Mergers and Acquisitions in the healthcare space can prove to be seamless and beneficial to an organization. However, the reality is that there are pitfalls to avoid in joining different organizations into one entity. The following are three common pitfalls to avoid since they may lead to a negative outcome in a healthcare merger.
- First and foremost, a decrease in the quality of care is the most concerning pitfall in healthcare mergers and acquisitions. Quality of care can be affected due to a large variety of factors. Changes in operations standards, a lack of communication between stakeholders, faulty IT services, or mismatching administrative procedures are all negative outcomes from an M&A deal that could begin to affect the quality of care across facilities. Consolidating systems, acquiring buy-in across stakeholders, exploring similarities in culture and procedures, and compatibility of care are all possibilities to explore to maintain excellence in the care provided by your facilities. Ultimately, healthcare is about providing the highest possible quality of care and attention to your patients. Your offerings should not suffer because of a rushed merger or acquisition.
2.Second, a failure to integrate the workplace culture of the organizations. This pitfall can lead to missed opportunities, not to mention having serious possibilities for negative consequences. A lack of cultural cohesion may lead to lower talent retention and a decrease in the quality of care being provided by your staff. This is a worst-case scenario – more common is the reality that a merger might lead to inefficiencies that fly under the radar. This is especially true if both facilities are performing well financially. These inefficiencies can lead to substantial operational costs, mismanagement of resources and patients, and poor quality of care.
3.Third, failing to create standardized operations processes across the organization. Standardization during a merger is important within entities that provide care. Variations in procedures from one location to another can impact the quality of healthcare being provided, which can affect patient health. Changes to operational procedures are very difficult. They require a serious commitment of time and a desire on all sides to communicate effectively. Staff will need to be retrained, usually across the board, to increase uniformity in knowledge. Changes to these procedures can positively influence the culture of your facilities by making the lives of your staff easier. Ultimately all changes should reflect the needs of your staff. Something implemented universally that only benefits or works for 50% of healthcare providers aren’t worth pursuing. When making decisions about standardization of operations processes, consult an expert in the healthcare mergers and acquisitions field. Clinical practice unification is the best way to ensure that two or more separate healthcare providers now view themselves as a collective.