Assess the wisdom of strategic affiliation
As the health care landscape changes, your organization may find that the best way to remain financially viable and most effectively meet your community’s health care needs is to enter into an affiliation with a compatible organization. Or, you may find just the opposite, realizing that you can best meet local needs by remaining a stand-alone or independent hospital.
Trustees should lead the organization in making this decision. Rather than assuming that an affiliation is the best solution, trustees should first evaluate the hospital’s financial and strategic position. Once intelligence gathering is complete and the organization’s leadership has a clear picture of the hospital’s position and the opinions of key stakeholders, the board can move forward with the approach that best meets the hospital and community’s long-term needs.
Additional Resources for Strategic Affiliation
The Board’s Role in Mergers & Acquisition – AHA Trustee Services Video
|Discussion Questions: The Board’s Role in a Changing Health Care Environment|
Keep your board on the leading edge with the nation’s best resources
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…