Deals involving healthcare services made up the bulk of M&A activity in 2015, but structuring and executing a transaction is only the tip of the iceberg. Once the ink dries and an affiliation, merger or acquisition is complete, the real work begins: operational change management.
A clear-eyed vision of what synergies will be realized in the first 90 to 180 days post-merger is a necessity, as one CFO said. Unfortunately, for many executive teams, the vision soon grows foggy. In a survey of hospital and health system leaders conducted by Becker’s Hospital Review, 41 percent said they have made poor progress toward post-M&A operational efficiency, hardly realizing the economies they planned for when structuring the deal. “I think what you’ll find is it’s not as easy as you thought,” one CFO told Becker’s.
This E-book, based on survey responses from financial executives and a roundtable discussion with five hospital and health system CFOs and a healthcare finance expert, highlights the challenges and best practices around operational change management after a merger, acquisition or affiliation. CFOs touch on real-life lessons learned after acquiring or affiliating with other hospitals and health systems, including insight as to what types of plans they enact the day a deal closes, how they weigh decisions about right-sizing and how they define being a good partner.
To access the full E-book to read and hear the CFOs’ insights, click here.
