Key Market Trends

Waves of Change Driven by Economics

Continued Growth in Consolidation

Three Primary M&A Strategies Emerge


Hospitals and health systems remain
independent, but create legal partnerships
that allow them to pursue common goals
and mitigate financial and clinical risks.


Hospitals combine with each other — or
even health plans and specialty clinics — to
pursue joint ventures. Primarily designed to
improve performance of value-based care,
data analytics and population health

Full-asset Mergers
and Acquisitions

The most commonly pursued approach is to
merge or buy peer organizations that have
complementary capabilities, market reach
and brand reputations. This strategy typically
provides the quickest path to financial gains
— if the integration progresses smoothly.

How Can Hospitals Improve Post-M&A
Integrations and Outcomes?

Three New Ideas to Build Culture and Achieve Financial Goals

Immediately Bridge Previously Siloed Departments

Success in the emerging value-based environment will require a
detailed understanding and measurement of various processes
across the hospital — especially in patient care areas. Most hospitals today do not have the visibility to accomplish this, largely
because of silos between areas such as nursing, supply chain and
clinical engineering. The problem is compounded when trying to
standardize service across the disparate processes of two merging
organizations — from patient care to equipment management —
and it can generate significant waste.
Key concept: Ensure all process-standardization efforts engage team leaders across nursing, supply chain and clinical engineering. By leveraging best practices to re-engineer equipment processes, you can ensure internal teams have the transparency, visibility and control they need to better manage costly equipment rentals and capital purchases.

Empower Clinicians to Focus on What Matters Most

Because hospitals will be graded largely on patient satisfaction and
quality of outcomes in the value-based reimbursement era, a key to
success will be talent retention. Hospitals with the best clinical
talent will likely build the best reputations and earn the highest
reimbursement scores. Retaining top talent through the M&A
process is critical, as broken processes and working environment
challenges can prompt talented nurses to look elsewhere for
Key concept: Focus on increasing the amount of time nurses spend at the patient bedside by eliminating unproductive and non-value added tasks. For example, by eliminating the need for them to search for infusion pumps, beds and ventilators, you can increase both face-time with patients and job satisfaction. Ensure these processes are ready to go from day one of the integration phase.

Target “Low-Hanging” Cost Reductions to Jumpstart Savings

Forward-thinking hospitals are targeting “quick win” savings by
recovering millions of dollars in wasted medical equipment
spending. Infusion pumps, ventilators, specialty beds and other
medical equipment are typically mismanaged to the point that
utilization rates only average 42% in U.S. hospitals. This problem is
compounded during M&A activities, as a lack of visibility and
differing equipment processes can impede standardization efforts
and drive unnecessary spending. As a result, equipment
management processes tend to spin further out of control.
Key concept: During the M&A process, conduct a study on equipment utilization, spending and management of mobile medical equipment. Consider leveraging end-to-end equipment management services and deploy best-practice-based processes in the first year after the deal closes.

Other Insights and Resources

Elevate Your Team — Improve Your Hospital

Prepare For Growth

Key strategies to minimize disruption
and ensure post-M&A success

Raise HCAHPS Scores

Tips for improving HCAHPS scores
through streamlined care delivery

Empower Happy Nurses

Build a culture that inspires
happy, productive nurses