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Health care merger and acquisitions needs facilitators, should avoid the department of justice scrutiny and requires additional due diligence.

When Health Care Mergers and Acquisitions Flatline

   

This podcast focuses on the business financial advisor's need to act as a facilitator between the parties in a health care merger and acquisition in order to successfully close the deal.

When consolidation deals move forward, there is usually an agreement that for some period of time both parties share governance, either at the CEO or COO level. Then, after that initial period of time, there is another vote taken as to who should in fact represent the organization.  

A health care merger and acquisition requires additional due diligence since the health care industry is fraught with over-regulation. There is a constant review by health care attorneys at different points of the process to make sure that the deal isn’t going to run afoul of federal or state law. One such recent consolidation attempt failed because it had gotten the attention of the department of justice over concerns about the size of the market share that these two organizations would control, and in particular over Medicare advantage.


Transcript

David Plaskow: Hello and welcome to EisnerAmper’s podcast series where we try and dig a little deeper in accounting and finance issue facing business professionals and their clients. Today’s topic is when health care mergers and acquisitions don’t get off the ground. I’m your host Dave Plaskow. With us today is Michael McLafferty, an Eisneramper partner who is the head of the health care services group. Michael, welcome and thanks for being here.


Michael J. McLafferty is an Advisor in the Health Care Services Group (HCSG) with years of experience in the health care field, providing business services to multihospital systems, pharmaceutical firms, surgery centers and physician practices.

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