Mergers in Healthcare are becoming more common in the healthcare industry. Mergers and acquisition ar complex process that needs proper planning and preparation. In order for Mergers in Healthcare to be successful, healthcare organizations need to follow the steps below.
Evaluate Internal Finances and Liquidity
Before a merger can be carried out, the healthcare organization should carry out an internal analysis of finances so it has a clear understanding of its financial statements. The organization should correctly determine and define its liquidity because that’s a huge determinant of its sale value. The companies liquidity also shows the state of the company and if it can survive the merge. This is because mergers come with a lot of financial needs amongst other changes and so the company needs to be able to handle it during and after the merger.
If the company evaluates its finances and find that it is not strong or stable enough, then they can work on acquiring dept of equity financing either before or after the merger. Acquiring new financing after the merger will give the company enough financial backing to pick up operations after the merger. If none of this is possible then maybe the company needs to hold off on making any acquisition or going into any mergers till their finances are in a healthier state.
Have a Comprehensive Plan
This goes without saying, but the merger should not start without a well laid out and detailed plan. Merging two organizations is going to be more complicated than anticipated so the plan must make room for contingencies, nee developments, and flexibility. The leadership and merging teams establish milestones in the plan that would drive the integration of both companies. Team members should be put in charge of each milestone and held responsible for the execution of each. This will help the overall plan be stronger as each part of it will be attended to with great detail and intention.
Have a Mergers Team
A healthcare organization needs to put together a transition team that will oversee any mergers. It takes a lot of effort to merge two companies and it won’t be done properly if no one is in charge. The transition team should contain a member from every area of the organization and from different levels. Each member of the mergers/transition team will use their expertise to overseas different aspects of the merger. The team will be in charge of preparing the organization for the merger, taking care of things during the transition, and helping the organization adapt to the newly formed organization. Every member of the team must have the same objectively, communicate constantly and be proactive. The team member must also be willing to carry out their respective responsibilities within the limits of their authority as defined by the CEO or someone appointed by that person.
Have a Leadership Team
In addition to having a mergers team, a healthcare organization also has to have a leadership team that will oversee the merger and also oversees the merging teams of both organizations. Merging two companies means that there will definitely be compatibility and integration issues, no matter how hard you’ve worked to reduce the risk of that happening. The presence of strong leadership will help mitigate any issues that come up. The leadership team will also help set precedence for how thing should be done in the newly formed company.
It will be the first lead for the new organization and having them lead the merger will increase employee confidence in them. The leadership team members should be quick thinkers, charismatic, and should have a good knowledge of both companies. Most importantly, the leadership team should be formed with members from all organization involved in the merger. This will help the leadership team understand the workings and characteristics of each organization involved in the merger. This knowledge will help the leadership team ensure that the merger goes smoothly and successfully.
Measure Established Goals
Anything that is not measured cannot be improved. Mergers in healthcare need to have established goals and these goals need to be measured regularly. The main goal is the reason for the merger. A healthcare organization could be involved in a merger because they want to have access to the other company’s advanced technology, intellectual property, advanced level staff, etc. There are also smaller goals that can be achieved with a merger. Every goal must be tested and measured constantly to make sure the company does not lose sight of them. Setting goals helps the company and merger team make decisions in the right direction for the benefit of the merger.
Make Sure Data and Information is Secure
An organization must always have to watchful for leaks in its information system and it always has to make sure its data is secure at all times. During a merger, the organization has to take even more precaution about this. Mergers can be quite chaotic and it could lead to loss of information or leaks in the system if no one is paying close attention. During a merger, lots of information will be shared both within and outside the organization.
This information exchange s vital if the merger is to be carried out Succesful. The healthcare organization must make sure that every information shared is secure and that the level of security is properly communicated. So for example, so a file that is o ly accessed by top management is shared with the merging company. This has to be communicated to the company does not put the file in the general database which is accessible by all employees. This will compromise that information and could lead to dire consequences.