A hospital merging into a larger system may not be too groundbreaking these days, given the rapid pace of consolidation. But it may put some stakeholders and people in the community on edge, especially if the reasons for the transaction are not communicated clearly, frequently and openly.
In a recent blog post, Tim Strickland, senior executive advisor with Jarrard Phillips Cate & Hancock, described five rules for hospitals and health systems to maintain trust during a merger or acquisition.
1. Keep your audience in the know. Educate stakeholders about the pressures your organization is facing and the broader consolidation trends in healthcare. When they're informed, people won't be shocked when it comes time for a hospital or health system to announce their search for a partner.
2. Be careful about wording. "We’ve observed over and over that when you announce you’re seeking a 'strategic partner,' employees and physicians hear 'we’re for sale,'" Mr. Strickland wrote. Be clear and deliberate with stakeholders by defining what these terms and phrases mean, but do so without showing all your cards to prospective partners or diminishing your bargaining position.
3. Stay in touch. Once a hospital or health system announces they're seeking a partner, they need to overcommunicate, wrote Mr. Strickland, to prevent any rumor mills. "The longer you go without communicating, the more rumors and distrust will grow, and the more damage will be done. Be visible. Use multiple communication channels," he wrote.
4. Share news if you can. If it won't cause panic or hurt a system's bargaining position, share news with stakeholders to promote transparency between the C-suite, physicians and employees. "And remember, it's OK to say 'We don't know yet, but as soon as we do know, we'll share the information," wrote Mr. Strickland.
5. Emphasize the big picture. Reinforce the message that the health system wants to become stronger and expand local healthcare offerings, not limit them. Focusing on the long-term benefits of the merger or acquisition can keep the community from panic.
In a recent blog post, Tim Strickland, senior executive advisor with Jarrard Phillips Cate & Hancock, described five rules for hospitals and health systems to maintain trust during a merger or acquisition.
1. Keep your audience in the know. Educate stakeholders about the pressures your organization is facing and the broader consolidation trends in healthcare. When they're informed, people won't be shocked when it comes time for a hospital or health system to announce their search for a partner.
2. Be careful about wording. "We’ve observed over and over that when you announce you’re seeking a 'strategic partner,' employees and physicians hear 'we’re for sale,'" Mr. Strickland wrote. Be clear and deliberate with stakeholders by defining what these terms and phrases mean, but do so without showing all your cards to prospective partners or diminishing your bargaining position.
3. Stay in touch. Once a hospital or health system announces they're seeking a partner, they need to overcommunicate, wrote Mr. Strickland, to prevent any rumor mills. "The longer you go without communicating, the more rumors and distrust will grow, and the more damage will be done. Be visible. Use multiple communication channels," he wrote.
4. Share news if you can. If it won't cause panic or hurt a system's bargaining position, share news with stakeholders to promote transparency between the C-suite, physicians and employees. "And remember, it's OK to say 'We don't know yet, but as soon as we do know, we'll share the information," wrote Mr. Strickland.
5. Emphasize the big picture. Reinforce the message that the health system wants to become stronger and expand local healthcare offerings, not limit them. Focusing on the long-term benefits of the merger or acquisition can keep the community from panic.
More Articles on Hospital Transactions:
4 Helpful Steps for Healthcare Transaction Regulatory Reviews
4 Important Areas of Board Education Before a Hospital Transaction
Is Your Hospital Considering a Transaction? 4 Legal Areas You Must Address