The volume of hospital M&A deals has doubled over the past six years, with fewer and fewer community hospitals still going it alone. For the remaining holdouts, they are at an important juncture: Should they continue fighting for independence or join a larger system?
This heavily-debated question is at the core of many board meetings. While the answer is unique to each institution, in either scenario, the community hospital that proactively controls its own destiny — instead of losing that control to market forces — can come out ahead.
Whether the future holds independence or acquisition, here is what leadership needs to know to position their hospitals for future growth.
What does it take to stay independent?
For efficient facilities with ample cash on hand, there’s an understandable allure to remaining independent. After all, the board of directors at a community hospital is typically made up of individuals from the local area who can continue to focus exclusively on addressing the needs of the local community rather than answer to a distant corporate team.
But a lean and high-volume operation today just isn’t a strong enough indicator to choose independence for the long term. Leadership must consider broader questions that take into account a host of internal and external factors:
HENRY KOTULA 