1st Edition

Predicting Successful Hospital Mergers and Acquisitions A Financial and Marketing Analytical Tool

    140 Pages
    by Routledge

    140 Pages
    by Routledge

    As managed care continues to increase in the United States, hospital and system executives consider mergers and acquisitions more frequently for both aggressive and defensive reasons. Predicting Successful Hospital Mergers and Acquisitions can help you learn to analyze data to determine which hospitals are potential candidates for merger and which are risky business ventures. You will learn to take into account not only the marketing and financial elements of mergers and acquisitions, but also the operational factors crucial for success. You will also acquire a set of guidelines and financial analytical approaches that prepare you for forecasting the results of proposed mergers or acquisitions between acute units.

    Because few new markets are available for hospitals and competition is increasing, performing mergers and acquisitions may be the only route available for organizations wishing to grow. Predicting Successful Hospital Mergers and Acquisitions teaches hospital, system, and other health service industry executives how to keep abreast of their market positions to remain competitive and efficient in the current, intense managed care environment.

    As you read Predicting Successful Hospital Mergers and Acquisitions, you learn to identify significant financial variables in the market that will differentiate between merger candidates and non-targeted hospitals. The book’s coverage of the following topics is important to your understanding of the health care market and the options available:

    • market penetration
    • product development
    • market development
    • diversification
    • significant variables one year prior to merger
    • use of accounting numbers to predict takeovers
    • managed care
    • staffing issues

      Predicting Successful Hospital Mergers and Acquisitions gives you a practical, proven model for predicting the outcome of merger and acquisition maneuvers. This model is developed from accurate, consistent, and complete data from California, a trendsetting market in health care delivery, during the years 1984 to 1992. It can be applied not only to hospital mergers and acquisitions, but also to skilled nursing facilities, psychiatric care centers, and rehabilitation facilities seeking growth. Educators and program directors in health care administration programs and executives and boards of imaging centers, surgi-centers, and home health agencies can also employ this model to stimulate growth and expansion.

    Contents What This Book Will Do for You: Introduction
    • Review of Previous Studies
    • Studies Performed on Hospitals
    • Data Collection and Analysis
    • Marketing and Operational Factors That Affect the Success of Mergers and Acquisitions
    • Postmerger Analysis
    • Recommendations and Conclusions
    • Appendix A. Variable Names
    • Appendix B. Discriminant Analysis of Nineteen Variables One Year, Two Years, Three Years, Four Years, and Five Years Before Merger
    • Appendix C. Comparison of Values of Nineteen Variables Before Merger and One Year After Merger
    • Appendix D. Comparison of Values of Nineteen Variables Before Merger and Two Years After Merger
    • Appendix E. Comparison of Values of Nineteen Variables Before Merger and Three Years After Merger
    • Appendix F. Comparison of Values of Nineteen Variables for Merger Firms vs. Nonmerged Firms
    • Bibliography
    • Index

    Biography

    William Winston, David P Angrisani, Robert L Goldman