Over the past couple of years, there have been a number of mergers and acquisitions in the health care industry, some worth billions of dollars that have gone a long way in transforming the way healthcare system works. The main push behind healthcare mergers and acquisitions is the ability to decrease overhead costs and to improve productivity. This blog will highlight some key aspects of Medical Business Mergers and how to ensure the merger is beneficial to both parties.
The benefit of Added Resources: The overhead cost of running a private practice has shot through the roof. Apart from the office space, medical business owners need to invest a significant amount of money to purchase and maintain medical equipment. The rising cost of running multi-facility healthcare systems has led many physicians and medical business owners to seek out like-minded businesses to collaborate with. Medical business mergers allow doctors and medical professionals to serve patients in a better way, thanks to the availability of added resources. Healthcare mergers and acquisitions create a larger scale for the purchasing of more advanced medical equipment and services. Apart from the equipment itself, thanks to mergers and acquisitions in the medical business, doctors also benefit from the combined knowledge they can gain while working alongside other experienced medical staff.
Developing a Solid Communication Plan: Each business has a particular set of goals and adopts a unique work ethic to meet those goals. Within the medical and healthcare industry itself, businesses and institutions have different ways of approaching patient care. Whenever two companies or medical practices seek to undertake a merger or an acquisition, it is important to develop a solid communication plan related to key stakeholders and project details. Thanks to years of experience, Stoneridge Partners is a healthcare merger and acquisitions advisory firm that works with both parties to ensure the necessary information is available to facilitate a smooth transition. The communication plan will help remove the stress of the “unknown” and ensure that quality patient care will carry on while the merger is in progress.
Widen the customer base: The doctor-patient relationship is built on trust and confidence. Once a patient is comfortable with a particular doctor or a specific healthcare facility, they are not likely to change and go looking for something else. That is one of the main reasons why medical businesses find it difficult to engage new patients and get new customers. However, undertaking a healthcare merger or an acquisition allows each entity to enjoy a more extensive consumer base. Thanks to the addition of new customers acquired or merged hospitals witness increased revenue, not to mention post-transaction decline in overall operating margins.
Since medical mergers and acquisitions often involve a range of complex issues, it is important to get expert advice to make sure everything goes along smoothly. Stoneridge Partners is a leading Healthcare Merger and Acquisitions Advisory Firm that acts as a business intermediary between health agencies looking to expand their business ventures. If you are looking for a home health care business for sale consider giving Stoneridge a call. With a talented team of medical professionals and business administrators, Stoneridge Partners is a Healthcare Merger and Acquisitions Advisory Firm that seeks to build long-term relationships among medical businesses and healthcare facilities.