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Independence or Merger Analysis
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Veralon Cases & Insights

Independence or Merger Analysis

Client/Profile

Small, rural community hospital

Challenge/Situation

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.

Process

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.

Results

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.