As acute care providers respond to the recent challenges and opportunities created by healthcare reform, consolidation continues to emerge as an important option for hospital and health system boards to consider. As regulatory demands and business realities continue to change within the industry, hospitals and health systems will need to continually adjust their financial and operational plans in order to succeed and meet market demands. Such adjustments may necessitate that the board move the organization toward an affiliation transaction. To the extent a board determines that an affiliation transaction is necessary, there are many procedural and substantive issues to navigate.
In this white paper, McGuireWoods attorney Holly Carnell and Walter Olshanski, director of Healthcare Investment Banking, KeyBank Capital Markets, describe in depth nine core legal, strategic and financial issues for boards of directors to consider when deciding whether to affiliate with another hospital or healthcare system. These factors include: deciding when to affiliate, selecting advisors, establishing decision criteria, evaluating affiliation models, communicating with physicians and the public, educating board members, identifying and avoiding liabilities and roadblocks, addressing regulatory compliance concerns, and avoiding problems with government regulators.
For more information, read the full text of the article, titled “9 Core Considerations for Boards of Directors Considering a Hospital or Health System Affiliation.”