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

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MERGER, AFFILIATION, OR STAY INDEPENDENT YOUR BIGGEST DECISION

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

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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

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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!!!!

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QUESTIONS?