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Independence or Merger Analysis


Small, rural community hospital


To help the hospital reach a decision on whether to continue to operate independently (“go it alone”) or to seek affiliation with a potential partner organization.


Veralon worked with finance and operational senior leaders to model the best-case “go it alone” five-year financial outlook for the hospital, including implementation of significant improvement initiatives. Key operating and financial ratios were evaluated to determine whether the hospital would be in a position to remain independent and/or be considered a strong partner.


To consider the partnership scenario, Veralon facilitated Steering Committee meetings to identify hospital vision, growth, and financial goals. The Steering Committee ultimately selected partnership criteria and considered potential health system and payer partners. Veralon evaluated the potential partners, identifying them as short-term or long-term partners. Ultimately, one payer and one provider partner were selected for ongoing discussion.

Immediately following our work, the Board announced publicly its intent to pursue a strategic partnership.