There is no more significant or difficult decision than contemplating changes in the control of a community hospital.
However difficult, the new regulatory environment will result in many independent hospitals choosing to consider options or the future. With greater emphasis on integration and the coordination of care, organizational alignment within and across these entities is growing. Like many other leaders of independent hospitals, you may be contemplating whether your hospital should align.
Consider these 5 principles for success.
The best way to reach an enduring conclusion regarding the future of your organization is to consider and compare all reasonable options before choosing a direction. As you contemplate your options, adhere to the following five principles:
2. Keep independence "on the table". Contemplating strategic alignment with another healthcare organization does not necessarily require your organization to abandon its independent status. Independence should be the starting point and should remain an alternative throughout. Many organizations can remain independent with other transformative strategies.
3. Establish a competitive dynamic. The process should not be limited to one potential partner. Establish a competitive dynamic with more than one suitor, regardless of preferences for an outcome. Without this, negotiating leverage is diminished and the ability to close under your terms is jeopardized.
4. Impart discipline for best results. There are risk factors to any partnership process, especially related to perceptions of physicians, employees, management and the community. These risk factors make it very important to maintain the integrity and timing of the process and to have a comprehensive communications plan in place.
5. When it really matters, experience counts. For most healthcare leaders, a strategic transaction might occur once in a lifetime. The magnitude of what is at stake necessitates insight and advice from a trusted advisor. If you are contemplating a change, find a trusted advisor with experience and creative insight to help your organization produce successful results and guide your organization's efforts from the beginning to the end.
Learn more about TRG Healthcare.
Related Articles on Hospital Transactions:
Private Equity Funds Are Changing the Face of U.S. Hospitals
4 Ways to Ensure a Successful Hospital Merger or Acquisition
However difficult, the new regulatory environment will result in many independent hospitals choosing to consider options or the future. With greater emphasis on integration and the coordination of care, organizational alignment within and across these entities is growing. Like many other leaders of independent hospitals, you may be contemplating whether your hospital should align.
Consider these 5 principles for success.
The best way to reach an enduring conclusion regarding the future of your organization is to consider and compare all reasonable options before choosing a direction. As you contemplate your options, adhere to the following five principles:
5 principles for successes
1. Plan now for a better tomorrow. Many organizations wait to contemplate their future until they have lost a great deal of leverage and available options. Early planning will help to control your own future and drive your options to the very best outcome possible.2. Keep independence "on the table". Contemplating strategic alignment with another healthcare organization does not necessarily require your organization to abandon its independent status. Independence should be the starting point and should remain an alternative throughout. Many organizations can remain independent with other transformative strategies.
3. Establish a competitive dynamic. The process should not be limited to one potential partner. Establish a competitive dynamic with more than one suitor, regardless of preferences for an outcome. Without this, negotiating leverage is diminished and the ability to close under your terms is jeopardized.
4. Impart discipline for best results. There are risk factors to any partnership process, especially related to perceptions of physicians, employees, management and the community. These risk factors make it very important to maintain the integrity and timing of the process and to have a comprehensive communications plan in place.
5. When it really matters, experience counts. For most healthcare leaders, a strategic transaction might occur once in a lifetime. The magnitude of what is at stake necessitates insight and advice from a trusted advisor. If you are contemplating a change, find a trusted advisor with experience and creative insight to help your organization produce successful results and guide your organization's efforts from the beginning to the end.
Learn more about TRG Healthcare.
Related Articles on Hospital Transactions:
Private Equity Funds Are Changing the Face of U.S. Hospitals
4 Ways to Ensure a Successful Hospital Merger or Acquisition