The financial pressures of severe recession combined with ongoing competitive pressures are creating new urgency for mergers, acquisitions and collaborations in certain markets and situations.
For these efforts to be successful and achieve their objectives, their management and facilitation must begin long before the "letter of intent" is signed. DGA, working with its strategic partners in the Alliance, helps ensure that mergers, acquisitions and other collaborative arrangements result in lasting and positive relationships.
DGA provides a full array of strategic planning and financial modeling services for healthcare organizations considering a merger or acquisition:
- Assessing the strategic impact of combination: consolidation of service lines, medical staff and support functions, volume projections, revenue enhancement opportunities
- Determining the financial impact of combination: revenue projections, modeling of financial results with and without the merger/collaboration agreement, impact on capital expenditures and debt capacity
- Determining valuations in support of transaction terms: analyses of related businesses and joint ventures, as well as physician compensation
- Third party review of payer contracts
- Implementation recommendations: Structuring the transaction, service line recommendations, medical staff planning and compensation design, capital structure
Working with our partners in the Alliance, we can also assist in facilitating the entire process of assessment and implementation, including:
- Process Design and Facilitation: Formation of a joint steering committee, identifying outside assistance required, developing a work plan, involving key stakeholders and facilitation and documentation in all major meetings and events
- Assessing Readiness and Culture Compatibility: Ensuring that the parties have a unified vision for the long-term evolution of the new organization being created by examining norms, beliefs and values of the organizations to determine cultural compatibility
- Determining Governance Structure: Designing effective and efficient governance structures and processes, including determining committee structures, clarifying role/responsibilities among boards and boards and management, and application of governance "best practices"
- Implementation Planning: Assuring that assignments and accountability for implementation are clearly spelled out, and support in managing the ongoing change process from initial discussions through a period of two to three years after the papers are signed
- Providing Communications Counsel: Helping the collaborating organizations determine when confidentiality is required, and when open communications are needed, so that rumors are controlled, morale and productivity are maintained, and local news media and community leaders are appropriately informed and involved
|
