Healthcare mergers and acquisitions caught fire in 2015 and are predicted to continue the trend. As noted in the recent article Hospital M&A is Heating Up co-authored by myself and Mike Gillespie, global management consulting firm Accenture forecasts acquisitions of non-acute providers to reach 84 percent of total acquisition volume by 2018. The M&A activity is fueled by efforts to cut cost, increase quality and gain economies of scale needed to survive in a value-based reimbursement environment. However, these goals may be compromised when provider organizations aren’t preparing adequately for the integration of technology systems and data that will impact clinical, business and financial performance.
There are many challenges and opportunities for supply chain to address during a merger. Addressing these three areas are key to operational, clinical and financial success.
There is value – both for targets of acquisition and for those in a position to acquire – in addressing these three areas. As a target, an accurate presentation of the supply chain is more attractive and as an acquiring organization solidifying its financial position can potentially ease the funding process. You can read the entire article here.
Want more on healthcare M&A? Read how Mt. Sinai Health System tackled technology challenges during a time of significant growth due to M&A.