Partner Roger Strode was quoted in a Healthcare Finance
article, “Why acquiring a cash-strapped hospital brings new levels of risk
,” about the financial, branding, and cultural considerations that should be weighed when deciding to acquire or merge with another hospital.
Strode said such deals require a tremendous amount of due diligence, from hiring lawyers and outside accountants to understanding the material contracts to devising a five-to 10-year financial plan.
“There’s a certain amount of mission-driven thinking that goes into this,” he said. “If you’ve seen one of these deals, you’ve seen one of these deals. Healthcare is local, markets are different, so every deal is a little bit different. Some feel that if they don’t grab it now, their competitors will grab it, so they’ll fix the problems after they get it. Sometimes there’s a concern they’ll go to bankruptcy, and then it’s really difficult to acquire them.”