A Strategic & Quantifiable Approach to Identifying a Rural & Community Hospital’s Options
At some point in the life of a healthcare enterprise, consideration may be given to the strategic value of a merger with another institution or group, acquisition of another hospital, sale of the hospital, or affiliation with another healthcare organization.
Our approach to an affiliation engagement is based on a clear definition of the strategic objectives and constraints of the possible affiliation. We will then manage the affiliation or transaction process from initial discussions to closing, including business planning for sharpening post-closing initiatives.
A hallmark of our approach is an accretive analysis that seeks to create a quantified projection of the future value of integration which is used to set post transaction performance targets as well.
An important point of differentiation of our approach is that we are not transaction focused, but rather focused on the optimal approach for achieving our clients’ strategic goals. Affiliation discussions may not lead to a final deal. As the details of the transaction are negotiated, there may be valid strategic reasons to terminate discussions or change affiliation partners. Throughout the affiliation process, the strategic objectives of the organization should determine whether the affiliation is in the best interest of the institution.
Communicating the Rural Value Proposition to Prospective Partners
For any Rural and Community Hospital or health system evaluating its affiliation options, it is critical to ensure that prospective partners understand the unique attributes and value that they can bring as an affiliate to prospective partners. In our experience as a national and rural healthcare advisory practice, we have seen prospective partners fail to understand the value drivers of rural provider organizations to a larger health system.
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We Pride Ourselves On:
Experience in identifying and evaluating the strategic options available to the rural healthcare institution, which serves as the underlying context for most transactions
Objectivity identifying relationship structures that meet the respective needs of both organizations and have the ability to achieve meaningful results
Collaboration with legal counsel and other expert resources to assure the overall process is comprehensive, timely, and issues are appropriately identified and processed.