The landscape of healthcare is constantly changing… Change is inevitable and this change is applicable to both life and business. This upheaval was inevitable because the pandemic pushed the global economy into an abyss.?Along with the travel and hospitality industry, the healthcare industry is the industry that has experienced maximum turmoil.
Private hospitals have been caught up in whirlpool-like turbulence. The corona epidemic brought about a reduction in patient footfall as many opted for telehealth facilities. Many planned procedures were canceled as people only opted for emergency medical services to avoid unnecessary exposure.??
Conditions that brought about hospital financial crises
- Canceled planned procedures
- Investment in Covid-protective gear
- Investment in Covid protocol.
- Restrictions on working to full capacity
Several healthcare entrepreneurs are thinking about the consolidation of their financial position through fruitful mergers.
There are many triggers that can spur on consolidation activity and be advantageous to both patient care and physician future.
- Improved Access to Capital: Merging with a bigger hospital or partnering with other like-minded physicians can help access more capital. Funds can give wings to your expansion desires and give fuel to your marketing and promotion strategy. Additional money can help you reinvent your operation capability and revamp your assets in terms of technology, equipment, infrastructure, and information technology and personnel. Merging can help to divide your financial risks and can boost your bottom-line after time elapses. It can give you a new foot to stand on in a nutshell.
- Enhanced integration of services: Why do we go to a mall? Because we get many diversified products all under a single roof. The same applies to healthcare today. The patients are on the lookout for a comprehensive, all-inclusive stop for all their health needs. Multi-specialty hospitals are the need of the hour as they provide an array of consolidated services and coordinate better care for improved patient satisfaction. If a patient is able to access both diabetes care and cardiology consult in one set-up, it becomes convenient for him/her too. Similarly, if an orthopedic facility merges with a radiologist and a physiotherapist, a patient has access to diagnosis, treatment, and follow-up as a continuous flow.
- Reduced administrative costs: As a physician entrepreneur, you will agree that administrative and back-office functions can contribute hugely to your healthcare facility costs. If you have a hospital, you may have to dedicate an entire department to these backend activities. A merger can unlock savings through synergizing of administrative, advertising, reception, and record-keeping services. Housing many services in a single facility can cut down infrastructure and site costs too.
- Improved quality: A successful Merger can improve the overall efficiency and quality of access for the patients. Advanced medical equipment and clinical systems can be procured when costs are divided or shared.
- To conclude, many private practitioners are choosing to follow the path of mergers and acquisitions as a means to overcome financial challenges and also provide consolidated care to their patients. If you are a healthcare entrepreneur who wants to take a step on this path, be sure to consult Hospertz consultancy. We have more than two decades of experience and can help you navigate this difficult course with ease.
