In a recent Healthcare Financial Management Association report on acquisitions and affiliations, Jullia Quazi, BMO Capital Market's managing director, and David Johnson, BMO's former sector head and managing director, suggest that organizations considering a possible transaction ask themselves the following five questions.
1. What business or businesses is the organization in?
2. What is the growth trajectory for the organization, and how can the hospital or health system best invest in areas with the greatest growth potential?
3. Does the hospital or health system have the right executive team and governance structure in place to position itself effectively for the future? If not, what types of people are needed?
4. What forms of affiliation should the organization consider?
5. What can the hospital or health system obtain through partnership or outsourcing and stop owning?
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