Although healthcare transactions are prevalent, they are not always well received by physicians, nurses and the community. As soon as any sort of management or governance deal between two hospitals or health systems is announced, anxiety among employees and physicians may develop. As the deal progresses further, rumors about the future of the organization, its employees and its stakeholders may also develop. Hospital executives need to realize that no matter what they do, rumors — both positive and negative — will spread. The best method to get ahead of negative rumors is to effectively and strategically communicate to the hospital's audience early on in the process.
If a hospital wants to see a transaction come to fruition, it needs to develop a communications plan at the beginning of the transaction. Here are 14 best practices to help hospital leaders create effective and strategic communications during a merger or acquisition.
1. Build a campaign communications team. According to Anne Hancock Toomey, partner with Jarrard Phillips Cate & Hancock, a healthcare communications and public affairs firm, a hospital needs a designated team of communications leaders — internal and external — who are responsible for directing the messaging and communications strategy. The team should have a seat at the deal table so it can stay on top of the legal and financial issues relevant to the transaction.
"The team is also the eyes and ears of the campaign, constantly seeking feedback from key audiences and using it to shape the communications approach going forward," says Ms. Toomey.
2. Begin with end in mind. Martin Machowsky, senior vice president for strategic communications at McGuireWoods Consulting, believes beginning with the end in mind is an effective approach to supplementing a transaction process with a communications strategy. "Establish objectives up front. Think more broadly about what it means to complete the deal. You do not want to ask the wrong questions," says Mr. Machowsky.
In order to begin with the end in mind, Mr. Machowsky and Rex Burgdorfer, vice president of Juniper Advisory, recommend four objectives.
• Maximize value for the community
• Keep stakeholders informed and engaged
• Meet the boards fiduciary duties
• Minimize disruption of hospital operations
"If you invest the time and resources up front, you will have a smoother process down the road. When the Federal Trade Commission gets involved or when the nurses union gets agitated, it is better to have a communications response plan in place, rather than trying to create and implement a plan simultaneously," says Mr. Machowsky.
3. Commit to a campaign. While a hospital should write a news release to announce its transaction plans, the communications strategy cannot end there. According to Kristen Hayner, senior executive advisor at Jarrard, executives need to build a several-month plan to reinforce the transaction message. Branding the communications may be the best way to package the message.
"Give the campaign a name and create a logo around it that is tacked to every piece of communication you send. A good tagline is a great way to sum up a message," says Ms. Hayner. Beyond branding, the following tactics could be included in the campaign.
• Talking points and clear action assignments for leaders
• Talking points for physicians and caregivers
• Direct mail pieces
• Community forums
• One-on-one meetings with elected officials
• Weekly communications from the CEO to the employees
• Presentation on the benefits of the transaction
• Meetings with leaders of civic organizations
4. Take a seat at the deal table. Utilize the deal team — lawyers, brokers, administrative leaders, financial leaders and communications experts — to tailor the communications campaign to the particulars of the transaction and the political needs of the community. According to Ms. Hayner, the deal team can help the communications be strategic yet specific. If the deal is visionary, share that information, but do not forget to tell employees and patients how their lives will be affected. Where will they go for future treatment? Will an employee's vacation time be honored? The answers to these questions need to be answered so the response to a transaction is not "my care suffered" or "I was confused," says Ms. Hayner.
5. Approach communications jointly. The selling and buying hospital or health system should approach the communications plan jointly because they share a common goal. By working together, both hospitals will be on the same page and avoid potential disruptions.
"If your organizations are not on the same page about how and when to communicate from pre-letter of intent through close, you will trip over each other, miss opportunities and create unnecessary vulnerabilities for the organization that only heightens anxiety. Plus, your key audiences need to see and experience a united front to feel comforted that there will be continuity and security after the close," says Ms. Toomey.
6. Communicate the shared vision. Communicating the shared vision and goal of the transaction will help employees and other stakeholders understand and accept the deal. "It is part of the leader's job to help paint the shared view of the future. This is where we are going. We understand it is different. You may or may not like it. We are committed and want to help you understand the goal," says Carol Geffner, PhD, co-founder and president of Newpoint Healthcare Advisors. The hospital leaders should already have the vision laid out, so it will just be a matter of sharing those ideas with the hospital's audience.
7. Get the "talk right" internally. Personal stories from physicians and nurses are more effective than advertising campaigns, so Ms. Toomey recommends making internal communications a significant piece in a transaction campaign.
"Creating advocates and addressing issues inside the organization is a key to success with your internal audiences," says Ms. Toomey. If the physicians and nurses are educated on the transaction, they may be more inclined to support the deal. However, if they do not support the deal, winning community favor may become a tremendous struggle.
"Over the years we have seen countless hospitals try to communicate their greatness through an expensive ad campaign, only to be cut down at the knees by a nurse 'telling the real story' at a grocery story. The truth is, they have more credibility than an ad," says Ms. Toomey.
8. Own your message and over communicate. Make sure that your hospital is the first to announce and speak on the transaction. According to Ms. Toomey, the hospital should commit to being proactive with its messaging instead of reactive to rumors or other events.
Communicate more — and communicate more often — than expected. And, when you don't know the answer, it is okay to say that. The act of communicating sends a positive and reassuring message in itself," says Ms. Toomey.
The more a hospital communicates with its employees, physicians, patients and community, the higher the likelihood that they will hear the message and understand why the deal is important and in the best interest of the hospital. "Say it once, then say it again. And when you think you've said it too much, say it a couple more times," says Magi Curtis, senior advisor at Jarrard. It is important to keep in mind that everyone absorbs information differently. Utilize the campaign tactics to make sure that many methods of communication are addressed: email updates, town hall meetings, in person conversations and a web presence.
9. Don't dance to someone else's music. The most effective thing to do to control the transaction message is to stay focused and stick to the communications campaign — do not respond to stunts or statements made by competitors or opposition. "The best defense is a good offense," says Ms. Curtis.
10. Utilize the communication continuum. The rule of thumb with communications is to use as many mechanisms and vehicles that fit the circumstances as you can. In order to combat negative feelings and rumors as well as pushback from stakeholders and employees, hospital leaders should utilize the whole spectrum of media, according to Dr. Geffner.
"On one end of the spectrum, the CEO could send out periodic mass emails to share progress and occurrences with the hospital. As you move up the continuum, you would have small meetings between key hospital executives and leaders. Further down the continuum, the hospital would hold larger town hall meetings where the executives can meet with all the departments," says Dr. Geffner. Hospital leaders should utilize each area of the continuum when the timing is right to ensure that there is appropriate communication at the appropriate time.
11. Be personal. A hospital transaction communications plan should focus on personal interaction, according to Ms. Hayner. Employees are going to be concerned when they hear "sale," "merger" or "acquisition," so personal communication is the best way to share the true vision of the M&A decision. Ms. Hayner recommends answering questions via in person, one-on-one conversations and scheduling round-the-clock town halls or presentations.
12. Respond to concerns. Whatever forms the communications plan takes, hospital leaders need to include channels and vehicles to hear and respond to employee and community concerns.
"Strategically communicating and providing a vehicle for a dialogue is key. This does not mean polling the staff but providing a mechanism to encourage a two-way dialogue, which will help executives learn what is on the minds of the physicians or staff — before or during the transaction process," says Dr. Geffner. Anything the hospital executives learn during this phase of the communications plan could be incorporated into the operations of the hospital post-transaction. Overall, it would be a valuable learning opportunity for the hospital leaders.
13. Be transparent. In order to conduct a transparent communications campaign, the team needs to develop messages that answer employee and community questions with lay terms and next steps. Instead of saying "we will hire substantially all of the employees," use a transparent statement, such as "we're working hard to hire everyone, and will personally assist those whose skill sets don't match the positions available."
"[Transparency] lets you be honest and lets employees plan — two key tenets that will make a world of difference," says Ms. Hayner. Another way to be transparent is to create a website dedicated to the merger where employees can submit questions and sign up for email updates.
14. Consider social media. Social media may be a valuable tool for hospitals to communicate to the community during a transaction, but the applicability of social media does depend on the hospital and its situation.
"If it is a larger hospital and it has an established social media presence, it may want to use social media as an asset. Usually, this tool would not be used until the transaction is closed," says Dr. Geffner. Social media can be effective for responding to and mitigating community and employee concerns. However, best practices need to be implemented, such as employing one individual who monitors, reads and responds to the content regularly.
Think like the opposition. In order to defend the transaction from opposition, the hospital needs to think like the opposition. Ms. Hayner recommends speaking with community members and keeping regular meetings with elected officials to get the scoop — what is the opposition saying? If there are people opposed to the merger, why are they opposed? The hospital will need this information to be proactive against negative messaging.
"You may have been the media darling or the town favorite for generations, but don't take that position for granted. An event like a hospital sale is too disruptive to an emotional topic like people's healthcare to not be smart about it. Your opposition recognized that from the first time they heard about it. Don't retreat," says Ms. Hayner.
In order to manage response — negative or positive — to a transaction announcement, hospital leaders need to form strategic communications plans. Plans should be developed early so that when the deal is signed and sealed, the communications strategy is sound. The above 14 best practices will help leaders to begin effective communications during a merger or acquisition process.
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If a hospital wants to see a transaction come to fruition, it needs to develop a communications plan at the beginning of the transaction. Here are 14 best practices to help hospital leaders create effective and strategic communications during a merger or acquisition.
1. Build a campaign communications team. According to Anne Hancock Toomey, partner with Jarrard Phillips Cate & Hancock, a healthcare communications and public affairs firm, a hospital needs a designated team of communications leaders — internal and external — who are responsible for directing the messaging and communications strategy. The team should have a seat at the deal table so it can stay on top of the legal and financial issues relevant to the transaction.
"The team is also the eyes and ears of the campaign, constantly seeking feedback from key audiences and using it to shape the communications approach going forward," says Ms. Toomey.
2. Begin with end in mind. Martin Machowsky, senior vice president for strategic communications at McGuireWoods Consulting, believes beginning with the end in mind is an effective approach to supplementing a transaction process with a communications strategy. "Establish objectives up front. Think more broadly about what it means to complete the deal. You do not want to ask the wrong questions," says Mr. Machowsky.
In order to begin with the end in mind, Mr. Machowsky and Rex Burgdorfer, vice president of Juniper Advisory, recommend four objectives.
• Maximize value for the community
• Keep stakeholders informed and engaged
• Meet the boards fiduciary duties
• Minimize disruption of hospital operations
"If you invest the time and resources up front, you will have a smoother process down the road. When the Federal Trade Commission gets involved or when the nurses union gets agitated, it is better to have a communications response plan in place, rather than trying to create and implement a plan simultaneously," says Mr. Machowsky.
3. Commit to a campaign. While a hospital should write a news release to announce its transaction plans, the communications strategy cannot end there. According to Kristen Hayner, senior executive advisor at Jarrard, executives need to build a several-month plan to reinforce the transaction message. Branding the communications may be the best way to package the message.
"Give the campaign a name and create a logo around it that is tacked to every piece of communication you send. A good tagline is a great way to sum up a message," says Ms. Hayner. Beyond branding, the following tactics could be included in the campaign.
• Talking points and clear action assignments for leaders
• Talking points for physicians and caregivers
• Direct mail pieces
• Community forums
• One-on-one meetings with elected officials
• Weekly communications from the CEO to the employees
• Presentation on the benefits of the transaction
• Meetings with leaders of civic organizations
4. Take a seat at the deal table. Utilize the deal team — lawyers, brokers, administrative leaders, financial leaders and communications experts — to tailor the communications campaign to the particulars of the transaction and the political needs of the community. According to Ms. Hayner, the deal team can help the communications be strategic yet specific. If the deal is visionary, share that information, but do not forget to tell employees and patients how their lives will be affected. Where will they go for future treatment? Will an employee's vacation time be honored? The answers to these questions need to be answered so the response to a transaction is not "my care suffered" or "I was confused," says Ms. Hayner.
5. Approach communications jointly. The selling and buying hospital or health system should approach the communications plan jointly because they share a common goal. By working together, both hospitals will be on the same page and avoid potential disruptions.
"If your organizations are not on the same page about how and when to communicate from pre-letter of intent through close, you will trip over each other, miss opportunities and create unnecessary vulnerabilities for the organization that only heightens anxiety. Plus, your key audiences need to see and experience a united front to feel comforted that there will be continuity and security after the close," says Ms. Toomey.
6. Communicate the shared vision. Communicating the shared vision and goal of the transaction will help employees and other stakeholders understand and accept the deal. "It is part of the leader's job to help paint the shared view of the future. This is where we are going. We understand it is different. You may or may not like it. We are committed and want to help you understand the goal," says Carol Geffner, PhD, co-founder and president of Newpoint Healthcare Advisors. The hospital leaders should already have the vision laid out, so it will just be a matter of sharing those ideas with the hospital's audience.
7. Get the "talk right" internally. Personal stories from physicians and nurses are more effective than advertising campaigns, so Ms. Toomey recommends making internal communications a significant piece in a transaction campaign.
"Creating advocates and addressing issues inside the organization is a key to success with your internal audiences," says Ms. Toomey. If the physicians and nurses are educated on the transaction, they may be more inclined to support the deal. However, if they do not support the deal, winning community favor may become a tremendous struggle.
"Over the years we have seen countless hospitals try to communicate their greatness through an expensive ad campaign, only to be cut down at the knees by a nurse 'telling the real story' at a grocery story. The truth is, they have more credibility than an ad," says Ms. Toomey.
8. Own your message and over communicate. Make sure that your hospital is the first to announce and speak on the transaction. According to Ms. Toomey, the hospital should commit to being proactive with its messaging instead of reactive to rumors or other events.
Communicate more — and communicate more often — than expected. And, when you don't know the answer, it is okay to say that. The act of communicating sends a positive and reassuring message in itself," says Ms. Toomey.
The more a hospital communicates with its employees, physicians, patients and community, the higher the likelihood that they will hear the message and understand why the deal is important and in the best interest of the hospital. "Say it once, then say it again. And when you think you've said it too much, say it a couple more times," says Magi Curtis, senior advisor at Jarrard. It is important to keep in mind that everyone absorbs information differently. Utilize the campaign tactics to make sure that many methods of communication are addressed: email updates, town hall meetings, in person conversations and a web presence.
9. Don't dance to someone else's music. The most effective thing to do to control the transaction message is to stay focused and stick to the communications campaign — do not respond to stunts or statements made by competitors or opposition. "The best defense is a good offense," says Ms. Curtis.
10. Utilize the communication continuum. The rule of thumb with communications is to use as many mechanisms and vehicles that fit the circumstances as you can. In order to combat negative feelings and rumors as well as pushback from stakeholders and employees, hospital leaders should utilize the whole spectrum of media, according to Dr. Geffner.
"On one end of the spectrum, the CEO could send out periodic mass emails to share progress and occurrences with the hospital. As you move up the continuum, you would have small meetings between key hospital executives and leaders. Further down the continuum, the hospital would hold larger town hall meetings where the executives can meet with all the departments," says Dr. Geffner. Hospital leaders should utilize each area of the continuum when the timing is right to ensure that there is appropriate communication at the appropriate time.
11. Be personal. A hospital transaction communications plan should focus on personal interaction, according to Ms. Hayner. Employees are going to be concerned when they hear "sale," "merger" or "acquisition," so personal communication is the best way to share the true vision of the M&A decision. Ms. Hayner recommends answering questions via in person, one-on-one conversations and scheduling round-the-clock town halls or presentations.
12. Respond to concerns. Whatever forms the communications plan takes, hospital leaders need to include channels and vehicles to hear and respond to employee and community concerns.
"Strategically communicating and providing a vehicle for a dialogue is key. This does not mean polling the staff but providing a mechanism to encourage a two-way dialogue, which will help executives learn what is on the minds of the physicians or staff — before or during the transaction process," says Dr. Geffner. Anything the hospital executives learn during this phase of the communications plan could be incorporated into the operations of the hospital post-transaction. Overall, it would be a valuable learning opportunity for the hospital leaders.
13. Be transparent. In order to conduct a transparent communications campaign, the team needs to develop messages that answer employee and community questions with lay terms and next steps. Instead of saying "we will hire substantially all of the employees," use a transparent statement, such as "we're working hard to hire everyone, and will personally assist those whose skill sets don't match the positions available."
"[Transparency] lets you be honest and lets employees plan — two key tenets that will make a world of difference," says Ms. Hayner. Another way to be transparent is to create a website dedicated to the merger where employees can submit questions and sign up for email updates.
14. Consider social media. Social media may be a valuable tool for hospitals to communicate to the community during a transaction, but the applicability of social media does depend on the hospital and its situation.
"If it is a larger hospital and it has an established social media presence, it may want to use social media as an asset. Usually, this tool would not be used until the transaction is closed," says Dr. Geffner. Social media can be effective for responding to and mitigating community and employee concerns. However, best practices need to be implemented, such as employing one individual who monitors, reads and responds to the content regularly.
Think like the opposition. In order to defend the transaction from opposition, the hospital needs to think like the opposition. Ms. Hayner recommends speaking with community members and keeping regular meetings with elected officials to get the scoop — what is the opposition saying? If there are people opposed to the merger, why are they opposed? The hospital will need this information to be proactive against negative messaging.
"You may have been the media darling or the town favorite for generations, but don't take that position for granted. An event like a hospital sale is too disruptive to an emotional topic like people's healthcare to not be smart about it. Your opposition recognized that from the first time they heard about it. Don't retreat," says Ms. Hayner.
In order to manage response — negative or positive — to a transaction announcement, hospital leaders need to form strategic communications plans. Plans should be developed early so that when the deal is signed and sealed, the communications strategy is sound. The above 14 best practices will help leaders to begin effective communications during a merger or acquisition process.
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