The Chartis Forum

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Can Hospital Mergers Deliver Real Value? The Answer is Yes…if You Do It Right.

The continuing increase in merger and acquisition activity should lead to real value, however, hospitals and health systems often fall short of realizing their vision for the future enterprise. In order to fully realize potential synergy value, organizations must be willing to tap every opportunity and address politically sensitive or challenging areas such as provider alignment and clinical service-line organization. Clear goals, timely decision-making and early planning around governance, operating philosophy and management structure are all essential to guide the new organization through its post-merger integration journey. As described in the case study on page 8, the recent merger to create Beth Israel Lahey Health (BILH) — one of the largest and most complex provider mergers in New England history — provides a meaningful example of the importance of leadership focus and alignment, integration planning and infrastructure, and stakeholder engagement to realize promised benefits and value.

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