Independence Assessments and Affiliations

Independence Assessments and Affiliations

Do independent hospitals and small systems have to be part of something larger to deal with the demands of value-based payment and population health management? Or to have reasonable access to capital?

Just over a third of US hospitals remained independent as of 2013. You may want to consider an independence assessment to determine if your organization has reasonable expectations for financial performance. If you do, but need to strengthen specific capacities, an affiliation or alliance may meet your needs.

Non-profit hospital boards may have a strong bias towards independence, and may be divided on their future course. Veralon helps organizations evaluate whether they can continue to be independent, meeting new challenges through alliances or partnerships, or should be looking at a merger or acquisition. We help bring objectivity to an emotionally-charged decision process.

The feasibility of continued independence is ultimately dependent on expectations for financial performance and access to capital. A Veralon independence assessment will:

  • Help your board leadership understand requirements for future success, and the challenges of integration:
    • Market and competition
    • Physician-hospital alignment
    • Population health management readiness
    • Leadership capacity
  • Provide an accurate assessment of your organization’s financial position, including the implications of your credit rating for your strategic initiatives
  • Explore paths that may change credit rating and capital availability

When you’re done, you’ll be ready to determine whether and how you really need to partner, as well as how to continue monitoring your situation.

If it appears that you can remain independent, we will familiarize you with various models for collaboration and affiliation between healthcare organizations, short of merger. These may include contractual relationships or affiliations focused on your organization’s specific needs (such as data management requirements for population health), an organization taking a minority ownership position of another organization, and several others.

We can help you define exactly what you need to get from an affiliation, what your criteria are for evaluating specific affiliation relationships, and can help you in applying those criteria to evaluating potential partners.

Veralon can also support you in discussions with potential affiliation partners, and in developing the terms or contractual or other agreements with a chosen partner.