Tag Archives: hospital mergers

Religious Principles and Hospital Mergers: Addressing a Conundrum

By Dale C. Van Demark

As we weather what most industry watchers (including me) have observed is a renewed wave of hospital and provider consolidation, it is likely we will continue to see failed merger attempts involving religious and non-religious hospitals. The recent failures of the hospital mergers in Waterbury, Connecticut and in the Philadelphia suburbs are just two recent examples.

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Three Critical Components of Every Hospital Merger You Need to Understand

Every hospital merger has three critical components that board members and senior management need to consider, and which can provide a great analytic framework within which to evaluate options early in the process of consider a transaction. By no means are these three the most important in every transaction, but every hospital merger I’ve worked on required careful attention to, and a very clear understanding of, these components.

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Community Hospitals: Know Your Constituents and Stakeholders Before Starting Down the Path to Merger

Organizations considering a significant transaction have a lot to think about.  One of the most important is making certain that relationships with key constituents and stakeholders are appropriately maintained and managed.  Too frequently, community hospitals and community health systems underestimate the scope and importance of those relationships.

Most of us can rattle-off a short list of key constituents and stakeholders for community hospitals and community health systems.

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When to Engage Transaction Counsel for a Hospital or Health System Merger or Affiliation

Not long ago, I had my appendix out.  Not wanting to spend more than necessary, I did a little reading on the subject and decided to do some of the pre-op work myself.  In addition to making certain the incision area was appropriately clean, I entered the hospital with my own set of scalpels and my own special concoction of over the counter pain killers to self-anesthetize.  Once in the hospital, I decided I might as well start the procedure and so I . . . .

Of course, I’m making this up.

But there is a point here.  While I would never consider beginning even minor surgery on myself, many hospitals and health systems go through the early stages of negotiating and developing a merger, significant joint venture or affiliation transaction without the help of transaction counsel in order to save some costs.

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