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Strategic Partnering Advisory Services for Community Hospitals
How well positioned is your organization in a consolidating market?
The environment in which health care providers are operating is more difficult than ever, with the landscape characterized by serious revenue constraints; growing competition; reduced capital access; higher borrowing costs; and increasing capital requirements for facility improvements, information technology, service line and physician strategies, and quality initiatives.
The implications of health care reform, in many instances, have been the final straw that has led many very strong community hospitals to evaluate the long-term viability of remaining independent. Kaufman Hall has assisted numerous organizations in evaluating whether they can fulfill their missions as an independent organization or better achieve their goals through a strategic partnership.
Tap Pbjective Advice to Evaluate Partnership Alternatives
When an organization’s board has decided to consider a strategic partnership, Kaufman Hall’s M&A team works closely with them on selecting and executing the optimal partnership. Their team-based approach, which includes industry veterans with expertise in strategic planning, financial planning, debt-related financial management, and mergers and acquisitions, provides clients with the best information on which to base these critical decisions.
Having participated in many of health care’s most significant and innovative deals over the past 25 years, we deliver the comprehensive view to help hospitals and health systems evaluate partnership alternatives and make the right long-term move for their business.
Kaufman Hall Strategic Partnering Advisory Services for community hospitals include:
Partnership planning, including:
- Assisting the client in developing detailed concrete strategic partnership goals and objectives
- Evaluating the benefits and drawbacks of the various transaction process strategies available to the client and developing the best-possible transaction strategy
Partnership development, which involves:
- Identifying the potential partners that could best meet the partnership objectives
- Preparing a thorough confidential descriptive memorandum that provides appropriate background on the partner-seeking entity to potential partners and development of a comprehensive request for proposal
- Contacting potential partners
- Receiving, evaluating, refining, and negotiating proposals
- Preparing the client hospital for reference calls and potential site visits with interested parties
- Executing a Letter of Intent with the preferred partner
Transaction execution, which involves:
- Coordinating comprehensive due diligence
- Negotiating definitive agreements to maximize value in terms of price and related conditions
- Obtaining necessary government and regulatory approvals
- Closing the transaction
Identifying and securing a best-fit partner can position the partner-seeking organization to more fully meet its community’s health needs well into the future.
Their goal is to put together a partnership that will stand the test of time, not simply execute a transaction.
For more information on Kaufman Hall’s Strategic Partnering Advisory Services, contact Kit Kamholz or Michael Finnerty at 847.441.8780 or kkamhholz@kaufmanhall.com or mfinnerty@kaufmanhall.com.
