Through a formal working relationship with other hospitals and health systems, a community hospital can access needed resources while protecting its independence.
Knoxville, TN (PRWEB) February 20, 2014
Community hospitals worried about losing local control through a merger or acquisition by a larger health system are exploring Network Alliances as a “best of both worlds” alternative. Through a formal working relationship with other hospitals and health systems, a community hospital can access needed resources while protecting its independence.
Noting traditional M&A activity remains brisk since the passage of the Affordable Care Act, the latest PYA white paper, Hospital Network Alliances: Independence Through Interdependence, says many community hospitals now are pursuing Network Alliances. These alliances can take many forms, but generally share these common characteristics:
- Shared resources and capabilities through clinical integration.
- Defined common interests.
- Stated financial commitment to support the alliance’s operation.
Based on its survey of existing Network Alliances, PYA identified five stages in the successful development of these organizations: (1) develop internal alliance strategy; (2) assess and engage potential partners; (3) jointly establish terms of relationship; (4) commence and maintain alliances; and (5) have an exit strategy. By not following these steps “the hospital runs the risk of rushing into a relationship without a foundation of trust,” according to the publication.
The PYA white paper concludes with 17 examples of Network Alliances that show the innovation, diversity, shape, and size of how these cutting-edge strategies can be tailored to meet specific needs and circumstances of all parties.
Put the deep and wide experience of PYA to work for you in developing and designing your Network Alliance by contacting Martie Ross or David McMillan at PYA, (800) 270-9629.
About PYA: Pershing Yoakley & Associates is ranked by “Modern Healthcare” as the nation’s 10th largest privately held healthcare consulting firm. From offices in Atlanta, Kansas City, Knoxville, Nashville, and Tampa Bay, PYA serves clients in 48 states. The firm and its affiliate companies - Realty Trust Group, PYA Waltman Capital, Healthcare Horizons Consulting Group, and PYA Analytics - have more than 270 employees.