What Are Organizational Goals/Requirements of a Partner Retain local - PDF document

M ERGER , A FFILIATION , OR S TAY I NDEPENDENT Y OUR BIGGEST D ECISION Steven J Tringale Estes Park Institute January 26, 2015 What Are Organizational Goals/Requirements of a Partner • Retain local identity and decision making authority • Improve alignment of clinical care and financial incentives among physicians and hospital • Provide clinical expertise across a comprehensive range of services • Population Health Management organization and infrastructure 1

What Are Organizational Goals/Requirements of a Partner • Provide access to capital and/or credit enhancements • Support joint investment in agreed upon programs, including facility/equipment • Co ‐ branding & Product steerage and to retain and grow volume • Improve net yield of payer contracts – Public Payer, Commercial, Self Funded What Are Organizational Goals/Requirements of a Partner • Provide strategic growth opportunities through joint recruitment of primary care and specialist physicians • Expense reduction opportunities • Support high value community based care delivery, including post acute care 2

Next Steps • Recast, refresh or conduct a strategic plan for your institution or system • Empower a Strategic Affiliation Committee of Board, Executive, and Clinical Leadership to Explore Options • Conduct an Extensive Internal Review of the Options – Business/Clinical/Regulatory • Develop plan to approach potential partners • Commence the Negotiation Process Closing Observations • Keep focus on option of choice • Maximize future options by agreeing to least intrusive option that meets institutions strategic requirements • Remain flexible and creative – Deal templates are just that – templates/guides • Be prepared to say no • Always have a Plan B!!!! 3

Q UESTIONS ? 4