Merger and acquisition (M&A) deals in the healthcare sector are surging in recent years. Three factors fueling this upswing include:
- Payment. Billing and processing the cost of care is no easy task. Add in the need to navigate federal and local regulations and this portion of healthcare delivery alone can easily become unmanageable.
- Technological advances. The COVID-19 pandemic led healthcare providers to implement remote capabilities for patient appointments and meetings. But even before this, the innovations within the healthcare field alone were advancing at rapid rates making it difficult for practicing physicians to keep up with changes to electronic record keeping, dictating patient records, and even tools to help deliver medicine.
- Patient awareness. Patients are taking on the role of advocating for their interests, and that is not always a bad thing. Though it can be helpful, it often increases the amount of time physicians spend talking with patients and can add more to their already overburdened schedule.
These factors led physician practices to consider merging with others to help better delegate efforts to address these factors in an efficient way. Those who find themselves considering an M&A deal can take action to better ensure a successful transition.
What steps help to better ensure a smooth M&A deal in the healthcare industry?
Due diligence, looking into the target practice’s finances, legal history, and even the reputation of the other practice can help to make sure it is a good fit for your own practice’s future goals. After making sure the other practice is a good fit, it also helps to put together a post-merger plan. Determine the type of work culture that is ideal for the post M&A group and communicate this with others in the group. These steps, along with the ability to advocate for your group’s interest during initial negotiations, can help to better ensure a smooth transition into a stronger entity after the M&A deal.
