Alternatives to a Alternatives to a Merger or Acquisition Merger - - PDF document
_________________________ _________________________ Alternatives to a Alternatives to a Merger or Acquisition Merger or Acquisition _________________________ _________________________ Dan Mulholland, J.D. Steve Rivkin Steven Tringale 1
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Alternatives to a Merger or Acquisition
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Alternatives to a Merger or Acquisition
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Dan Mulholland, J.D. Steve Rivkin Steven Tringale
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“The ACA will accelerate hospital mergers, Moody’s says”
– Modern Healthcare
“The ACA has unleashed a merger frenzy”
– Former FTC deputy director
“The ACA will accelerate hospital mergers, Moody’s says”
– Modern Healthcare
“The ACA has unleashed a merger frenzy”
– Former FTC deputy director
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Hospital M& A numbers Hospital M& A numbers
the Foundation for American Hospitals, there were:
the Foundation for American Hospitals, there were:
In 2014 In 2014
acquisitions and joint ventures
acquisitions and joint ventures
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Recent Examples Recent Examples
alliance
systems planning statewide network of 40 hospitals
27 hospitals (Banner + Univ. Arizona Health)
alliance
systems planning statewide network of 40 hospitals
27 hospitals (Banner + Univ. Arizona Health)
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“Lots of hospitals are looking across the street at other hospitals merging. They also feel like they have to merge too, or else they’ll become insignificant or left out of health plan networks. Especially the smaller community hospitals feel they need larger scale to continue to be stable, to serve, or be financially viable.” “Lots of hospitals are looking across the street at other hospitals merging. They also feel like they have to merge too, or else they’ll become insignificant or left out of health plan networks. Especially the smaller community hospitals feel they need larger scale to continue to be stable, to serve, or be financially viable.”
assistant director, Mergers Division, Federal Trade Commission
Mergers Carry Major Risks Mergers Carry Major Risks
gone bad
expectations, according to a 2012 report from PricewaterhouseCoopers
gone bad
expectations, according to a 2012 report from PricewaterhouseCoopers
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Why? Why?
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Alternatives?
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Alternatives?
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Affiliations Alliances Coalitions Collaborations JVs Partnerships
and…
Independence Affiliations Alliances Coalitions Collaborations JVs Partnerships
and…
Independence
“Hospital Alliances On the Rise.” “Hospital Alliances On the Rise.”
management capabilities
physician engagement
management capabilities
physician engagement
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A Regional Alliance (Sept. 2013)
www.AllSpireHealthPartners.org
Founding Initiatives Founding Initiatives
distribution
distribution
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Florida Times-Union, Jacksonville, FL
as an opportunity to protect and strengthen what we’ve each always done, while positioning ourselves to thrive in the future as a network of locally- governed organizations.”
as an opportunity to protect and strengthen what we’ve each always done, while positioning ourselves to thrive in the future as a network of locally- governed organizations.”
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PA Mountain Care Netw ork PA Mountain Care Netw ork
Regional, Punxsutawney Area Hospital
$220 million net patient revenue
under shared corporate umbrella
service improvements
Regional, Punxsutawney Area Hospital
$220 million net patient revenue
under shared corporate umbrella
service improvements
“Many of the advantages of a merger are now available through strategic partnerships.”
– Editorial, February 2015
“Many of the advantages of a merger are now available through strategic partnerships.”
– Editorial, February 2015
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“Some of the biggest names in health care delivery are putting their brand names on systems far afield from their main campuses.” “Some of the biggest names in health care delivery are putting their brand names on systems far afield from their main campuses.”
February 25, 2013 9 members in its “Physician Network,” started in 2005. 23 affiliates with its heart, neuroscience, neurosurgery, transplant, TeleStroke and oncology service lines, according to news reports.
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