AffiliateWell

Click on the video thumbnail at the top of the document to watch the video and answer the discussion questions about The Board’s Role in Mergers & Acquisition.

Financial pressure is causing many hospitals to consider some form of affiliation with another organization that can bring financial strength and resources to help them achieve their mission and vision.  In order to determine the alternative that best suits a hospital, it is imperative for the hospital’s governing leadership to take a long-term view, and carefully determine the approach that will best ensure the development, continuity and security of the community’s health care.

A priority objective for hospital partnerships is to build the competencies required to manage population health under new value-oriented care and payment models required by consumers, employers, and government and private payers.

Almost 60% of healthcare investors and operators said industry mergers and acquisitions will either stay the same or decrease in the next year, according to a recent survey.

In today’s health care landscape, consultants often advise independent hospitals to merge with a larger health system. However, the evidence supporting mergers is uncertain at best.

Here are mistakes to avoid when hospitals partner or affiliate with other organizations.