Mulling an M&A transaction? Here are 3 improvements in care quality to consider, possibly count on
Of 127 hospital executives involved in a successful merger or acquisition over the past five years, more cited “ability to survive” than any other reason for making the move. Some 43% named that as one of their top deal drivers.
Not far behind were hopes for increasing market share/procedure volumes (34%), gaining better access to capital (28%) and improving operating margins/financial performance (24%).
The findings are from the Berkley Research Group, which conducted the study early this year and released its results in a report this month.
When the BRG researchers whittled the field to leaders who played a direct role in leading a successful merger or acquisition (on either the buying or selling end), they found 33.
Asking this subgroup what clinical quality improvements they’d realized since completing the move, the researchers found three noteworthy outcomes.
Here they are, along with BRG’s comments on each:
1. Fewer seven-day readmissions for chronic obstructive pulmonary disease (reported by 9 of the 33). Hospitals reported 16% to 23% improvement in this measure, based on the hospitals using combined data and reporting, plus “making this specific goal” a “priority for the ER and physician leaders at both systems.”
2. Fewer 30-day readmissions for congestive heart failure (12 of the 33). Readmission rates of this type were 25% to 35% at the hospitals “being acquired”; but once becoming part of the larger entity, readmission rates improved by 10% to 20%, down to as low as 9% at one of the acquired hospitals.
3. Increase in discharges to home and not a skilled nursing facility with orders for day-1 home health visits (6 of the 33). This new protocol helped improve patient satisfaction scores among families and reduced readmissions within seven to 14 days of discharge, but statistics on the exact level of improvement were unknown.
In a discussion and conclusions section, the authors note that they began the executive survey in February “with the broader goal of uncovering the key factors of successful integration”—but had to rely on points of view from prior to or early on in the current public health crisis.
In April they heard back from some participants who shared how their thinking had changed since COVID’s descent across U.S. healthcare.
“Their answers suggest that M&A is now more important than it was when the study began,” the authors report, “although the recommendations for a successful transaction—shared vision, clear and consistent integration—likely remain.”
To download the report, click here (contact info required).
Dave P. has worked in journalism, marketing and public relations for more than 30 years, frequently concentrating on hospitals, healthcare technology and Catholic communications. He has also specialized in fundraising communications, ghostwriting for CEOs of local, national and global charities, nonprofits and foundations.