Industries

For many healthcare organizations, the best solution for improving operating margins and overcoming such issues as antiquated facilities, rising costs and declining reimbursements is to join a larger organization. Before entering into a merger or acquisition, though, the executive team should define both current and desired future situations, and consider the following questions

• Can you continue to survive as a “stand-alone” organization? What are the criteria against which you can measure this ability?
  
• Should you consider acquiring another hospital or hospitals and hope to achieve some real economies of scale?
  
• Should you consider merging with another organization? What will be the benefit to the community? The cost?
  
• If you decide that merger is the best route, which organization should you consider? On what basis should you select a future partner?
  
• Do you have “deal breaker” conditions that could prevent you from accomplishing an otherwise desirable merger or acquisition?
  
• If you proceed with a merger or acquisition, how do you ensure you keep your best people as well as optimize your combined strengths?
  

RSM McGladrey helps hospitals and other healthcare organizations answer these and related questions. Our team of experienced consultants has ushered numerous clients through the merger and acquisition process, and we have researched and recognized the “best practices” for maximizing the opportunities and minimizing the pitfalls.

Our Approach
Our objective approach analyzes your organization’s ability to survive and includes a range of services to support timely and informed decision making throughout the evaluation, planning and implementation of a potential merger or acquisition.

The level of assistance we provide to you varies, depending on the status of your organization. If your organization is in the early stages or just making an inquiry, we can assist in developing a DEFCON system to evaluate the current and future threats against your organization’s stability. We identify quantifiable financial, operational and market criteria against which to benchmark your organization’s condition.

For organizations that have already determined that a need exists, our menu of merger and acquisition planning services is segmented into three phases – Feasibility Modeling, Request for Proposal Generation and Due Diligence or Implementation Assistance – that may be employed separately or as an integrated process to meet your specific needs.

Our approach is designed to help your organization achieve the type and level of assistance it needs for evaluating and entering a potential merger or acquisition.

Contact
James E. Hosking, FAAHC, FHIMSS, CHE
Managing Director
312.634.7104

Go to the health care overview page