The Healthcare Industry
We Know Healthcare
|
Several factors are driving healthcare organizations toward mergers and acquisitions, including Obamacare, Population Health Management, MACRA/MIPS, Risk Contracting; required technology investment, strong credit markets and ; positive demographic trends such as an aging population; significant private equity interest; and overall reimbursement stability. In an environment of rising costs, declining reimbursement and increasing regulatory complexity, Healthcare executives and transaction stakeholders justify this activity by promising operating synergies, economies of scale, product/pipeline expansion, and cross-selling opportunities.
Unfortunately, the brutal reality is that the majority of healthcare transactions fail to create shareholder value. Why? Healthcare acquirers often fail to identify and mitigate the operational and integration risks associated with this growth strategy. Consequently, they have difficulty digesting their targets and experience a failure of internal processes, people, and systems. |
|
|