Transaction Advisory

sec-op helps ensure that when healthcare M&As are pursued, they will be the right choice for your organization, and will result in lasting and positive relationships. Our work is results-oriented, helping your organization reach a go/no-go decision

We work with hospitals or health systems that are seeking to affiliate or merge with an existing system, and with systems that are seeking to add or acquire a specific hospital or small health system. Our transaction advisory services include:

Process Facilitation and Negotiation

Once your organization has made the decision to look for a partner/partners, the dating game begins. sec-op can help your healthcare organization define the approach that best meets your needs, whether that involves approaching one or more potential candidates informally, or issuing a request for proposals from interested parties. We facilitate internal leadership decision-making, as well as exploratory discussions with potential partners.

RFP Development and Evaluation of Potential Partners

We work with “sellers” to determine who should receive the RFP, and to create a criteria-based evaluation process to determine which partners provide the best response to your needs. sec-op can assist you in translating those criteria into an RFP that will collect the information you need to assess possible partners.

For both “buyers” and “sellers”, we facilitate discussions among potential partners for mergers, acquisitions, and affiliations. As the list of potential partners is narrowed, sec-op can conduct an objective assessment of specific candidates in relation to the criteria that have been established. This may include evaluation of cultural compatibility, potential physician impacts, clinical program and quality impacts, and quantification of financial benefits.

Financial Feasibility and Modeling

We model the financial impact of any healthcare merger or acquisition as well as comparing the financial impact of different merger partners and scenarios against each other. Our prospective estimates include assessment of how an acquisition will affect the volume and scope of services at the acquired hospital/system and throughout the system, and how it will affect market dynamics.

We look at the impact of value-based payer contracts and programs. We consider the effect of operational synergies. Our robust modeling includes the preparation of prospective financial statements under various scenarios, to determine the range of possibilities. We also assess whether the acquirer’s capital commitment is adequate and realistic.

Post-Affiliation Considerations

If you are considering a merger or acquisition, you and your potential partners should begin to look at post-affiliation considerations even before due diligence. Hospitals and health systems need to achieve more than consolidation—they need true system integration across a broad spectrum of financial and clinical dimensions, to maximize value for customers. Rather than the historic focus on inpatient and ambulatory care, you should be looking at each other in terms of potential contribution to the full, balanced continuum of care, including integrating extended care and community health resources with other system services. sec-op’s team of multidisciplinary experts can help executives to set priorities and create plans to move their organizations forward towards this goal.

Once due diligence is completed, we can help identify and realize integration and restructuring benefits, yielding financial gains while improving clinical operations. We can also bring objective perspectives to discussions and decision-making processes that may have stalled or been derailed.

Through our strategic partner, sec-op can also provide merger and acquisition clients with national expertise in multi-campus service configuration and subsequent facilities master planning.