Skip to main content

Posts

Showing posts with the label acquisitions and mergers

3 Reasons to Prioritize Capital Equipment Planning During Healthcare System Mergers

From 1998 to 2015, over 1,400 hospital mergers have transpired in the U.S . They’ve been increasing nearly every year, especially since the ACA was enacted in 2010. Healthcare systems are consolidating for both financial and strategic reasons; these challenging and complex transactions bring growth opportunities as well as risks. An article found on CIO called: “What is merger and acquisition due diligence?” , written on June 9th, 2015 by Dewey E. Ray, explains the 4 areas of due diligence to focus on:  “Strategic Position    Financial Data    Operational Assets    Legal Matters”  Operational assets are a major aspect of M&A planning and implementation. Effectively dealing with the capital equipment involved in a transaction takes consideration, strategy, and organizational software tools. In this regard, let’s discuss 3 reasons to prioritize capital equipment planning during healthcare system mergers. Definition of Capital Equipment Equipment that costs over