Merging for Value: 4 Key Benefits from the Beth Israel Lahey Health Merger

by Scott Stuecher, MHA, Veralon

Healthcare megamergers are picking up steam, with the merger of Aurora Health Care and Advocate Health Care completed in 2018 and the merger of Catholic Health Initiatives and Dignity Health (now CommonSpirit Health) finalized earlier this year. Optum also completed their acquisition of DaVita Medical Group in June of this year. It’s a trend that […]

To Merge or Not to Merge: Informing the Conversation

by Scott Stuecher and Daniel Grauman

“Everyone in the industry is merging. We should be too.” “We’ve always been independent, and we should stay that way.” Independent hospitals continue to merge or affiliate with other hospitals or with health systems. However, independent hospitals still have company. In 2016, the latest year for which information is available, there were about 1,600 independent […]

Checklist: Discussing Onboarding Issues Before Closing a Physician Practice Acquisition

by Rudd Kierstead, Principal

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Many of the reasons why physician practice acquisitions come apart after the deals are finalized fall under the category of “operational incompatibility.” Too often, the team that negotiates the deal is not the same team that is charged with operationalizing the deal. As a result, potential administrative and management problems — from physician appointment schedules […]

A Successful Practice Acquisition Begins with Due Diligence

by Jessica E. Stack, Senior Manager

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It’s tempting to short-change the due diligence process when acquiring a physician practice. In the heat of a deal, hospital leaders are understandably most interested in determining fair market value (FMV) so they can make the buy decision and set the purchase price. The due diligence process can turn up insights about a physician practice […]

Survey Results are in: 5 Partnership Planning Insights From Industry Executives

by Scott Stuecher, MHA and Laura Zacchigna, Veralon
Becker's Hospital Review
April 2018

  It is no surprise that merger and acquisition (M&A) activity is on the minds of healthcare leaders across the country: There were an average of over 100 affiliations of various forms annually among health systems and/or individual hospitals between 2012 and 20171 as healthcare provider sector activity continues at a steady pace. Perhaps more surprisingly, […]

Don’t Lose Sight of the Strategic Value of Due Diligence

by Danielle Bangs, Manager, & Donnelle Jageman, Associate

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Performing due diligence can seem like a “check the boxes” exercise as organizations verify material facts, gain a clear view of the risks involved, and more. But there is strategic value in due diligence, especially in identifying the impact of the transaction on existing partnerships and relationships. Such insight empowers post-transaction planning and sets the […]

What Does CVS-Aetna Have in Store for Hospitals?

by Scott Stuecher, Manager, Veralon

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Twelve years after launching the retail health insurgency with the purchase of the start-up MinuteClinic, CVS Health is upping the ante. In the biggest deal of 2017, CVS Health acquired Aetna in December. At this point, all predictions about how this merger will impact hospitals and health systems are conjecture. However, hospital leaders would be […]

Assessing the Financial Impact and Viability of a Hospital Acquisition

by Sean Looby, Manager
Becker's Hospital Review
February 2018

Hospital M&A deals continue at a rapid pace. Evaluating a prospective deal requires a more detailed process of transaction due diligence than ever before, as tightening reimbursement and pressures to lower costs mean decreasing margins for error in decision making.

Valuing an Acquisition: Don’t Stop at FMV

by Daniel M. Grauman, Managing Director & CEO,
Danielle Bangs, Manager,
Sean Looby, Manager
hfm Blog
July 12, 2017

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  When a healthcare organization is considering an acquisition, there are two imperatives: It should know both the fair market value (FMV) of the target organization (the value to a hypothetical buyer) and its investment value (the value to a particular buyer), and it should understand the difference between these values. An acquirer should carefully […]