Healthcare transactions such as hospital system mergers and acquisitions (M&A) and spin-offs have become common strategic moves in the healthcare industry. These actions can bring both benefits and challenges to hospitals and hospital facilities management teams as they navigate these transactions that impact facilities, staff, patients, and resources.
Hospital System Mergers: Improved Hospital Facilities Finances
Mergers can provide many benefits to hospitals that merge with a health care system. According to KFF, the independent source for health policy research, polling, and news, “in some scenarios, small and struggling hospitals may seek to merge with large health systems in order to improve their finances or offer higher-quality services. For example, a large health system with deep pockets could provide a smaller hospital with resources to purchase new equipment and invest in quality improvements.”
6 Benefits of Hospital Facilities Mergers
Hospital system mergers allow for the potential for increased efficiency and economies of scale. By combining resources and streamlining operations, hospitals can reduce costs and improve overall financial performance with these benefits to hospital facilities management teams.
- Improved hospital facilities management finances
- Upgraded hospital facilities
- Advanced hospital facilities equipment
- Advanced medical technology
- Higher quality health care service
- Better patient care
Mergers could present challenges for hospital facilities management: combining different organizational cultures and management styles can create conflicts and hinder smooth operations. Mergers may also lead to job redundancies, which can impact morale and staff retention within the facilities management team. Knowing the regulatory and tax laws surrounding these kinds of health care transactions is necessary for a successful transition.
Hospital System Acquisitions: Integrating New Hospital Facilities
Acquisitions can offer hospitals access to new markets, specialties, and resources, enabling them to provide a wider range of services to patients. This can enhance the reputation and competitiveness of the hospital and hospital system. However, integrating new facilities into the existing system can be complex and time-consuming, requiring careful planning and coordination by the facilities management team. One method for improved hospital facilities management and efficiency of operating systems is integrated facilities management (IFM), which is the consolidation of all facility-related solutions and processes under one unified management group. IFM allows hospital management facilities teams to work proactively with a streamlined workflow and organization of resources. Hospital facilities management teams interested in implementing IFM should implement a building operations management software like Eptura, which provides improved visibility into facilities management metrics, integration of space management, improved sustainability and more.
Hospital System Spin-Offs: Enhancing Facilities Management Performance
A hospital system spin-off is the opposite of an acquisition and happens when a hospital system divests itself of an internal business like the recent 3M spin-off of Solventum. Spin-offs can provide hospitals with the opportunity to focus on their core competencies and strategic goals. By divesting non-core assets, hospitals can allocate resources more effectively and enhance their overall performance. However, spin-offs also involve significant restructuring and realignment of resources, which can disrupt operations and require adjustments from the facilities management perspective.
While hospital system spin-offs, acquisitions, and mergers offer opportunities for growth and improvement, they also present challenges for hospital facilities management. It is essential for hospital leaders to carefully consider the implications of these strategic moves and work closely with facilities management teams to ensure a smooth transition and optimal performance.