Best Practices for Healthcare Mergers & Acquisition
If your hospital or other medical practice is looking to expand and acquire another practice, there are some steps to take and pitfalls to avoid in order to keep on the right side of regulations and maximize efficiency. Below are a few tips from the healthcare mergers & acquisitions attorney at the Law Offices of Art Kalantar for your healthcare entity to follow when engaging in healthcare business transactions.
Plan ahead and be thorough
As any medical professional knows, an ounce of prevention is worth a pound of cure. Executives on all sides of the transaction should plan ahead to mitigate any problems or issues that may arise down the line. Executives should consider things like:
● What is the main goal of the transaction? What do you want to accomplish? Have specific financial and non-financial goals.
● Do you want to maintain jobs at the hospital? Will you transfer any clinicians from one location to another?
● Do you intend to restructure the practice being acquired, or your practice once merged?
● Do you intend to keep the same supply chain for each practice, or will you transition to a single supply chain? How will your vendors react?
● What are the cultural differences between the organizations?
● Who will take leadership responsibilities during and after the transaction?
● How can you align clinical and functional leadership early in the process?
● What milestones can be planned and tracked during the transaction process?
Build a strong team
The efficiency and effectiveness of your transaction will depend on the quality of your transaction working group. Get reliable executives, board members, and legal counsel to take ownership of the transition process. Retain outside experts who manage transaction processes for a living to ensure that you follow all appropriate regulations and are prepared for health department review. Include a finance professional such as an investment banker to keep the process efficient.
Consider how best to integrate the cultures of the entities
Mergers and acquisitions may involve a significant restructuring of one or both practices or hospitals. You will have to consider how you intend to get people to change their behavior, if that is your goal. If the organizations were previously competitors, then the process may be uncomfortable for the doctors, nurses, and staff. If compensation and benefits will change, then you need to let the employees and contractors know. It is important to invest time, energy, and care into integrating the cultures of the formerly separate entities.
It can be hugely beneficial to identify thought leaders who carry cachet with the nurses, physicians, and administrative staff. They will help with the transition process and can help minimize staff-related problems down the line.
Southern California Healthcare Business Lawyers
For help with healthcare transactional matters in Los Angeles and California statewide, call the Law Offices of Art Kalantar in Beverly Hills at 310-773-0001 for a free consultation.