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Assessing the Stand-Alone Strength of a Rural Community Hospital


Rural, independent community hospital


To determine how this stand-alone hospital could create a strong position from which to move forward, whether on its own or as a merger partner should that become necessary.

The hospital faces minimal competition and enjoys a strong position with payers. Senior leadership was concerned that this situation could change, given major shifts in the health care market nationally. In the event the hospital needed to merge in the near term, leadership wanted to be sure that it would do so from a position of strength.


Veralon conducted a thorough analysis of the Hospital’s strategic position, including a review of the competitive landscape, migration patterns to metropolitan hospitals, local demographic trends, and the hospital’s financial position and status with payers.


Combined with input from the hospital’s stakeholders, this assessment revealed that the Hospital would likely maintain its strong position going forward.

Veralon then developed an “independence dashboard” for the Hospital to review quarterly. The dashboard addresses the Hospital’s market position, financial situation, physician relationships, population health management readiness, and leadership. This dashboard will enable the Hospital to monitor its position going forward, evaluate whether its situation and “independence quotient” is changing, and ultimately, determine whether it should seek out a merger partner.