months of the pandemic as many providers hastened back to in-person visits, public desire for telehealth has only continued to grow, with 50% saying they are likely to use it in the future as of September.
outcomes will require heightened innovation, with leaders reevaluating legacy merger management tactics in pursuit of an approach that will drive outcomes in this new climate. For example, leaders
navigating M&A must relentlessly develop and engage talented RNs, physicians, physician leaders and nursing managers. Gallup research shows that during a merger, managers play a vital role -- but only 35% in the U.S. are engaged. M&A outcomes aren’t the only thing on the line: Engagement can mean the difference between retaining your top talent or losing it overnight in these
The best hospitals will continue to prioritize an integrated strategy that promotes the quadruple aim through constant review and improvement of the patient and employee experiences. Because patient needs and expectations will evolve continuously, hospitals need to constantly track patient insights across the continuum of care -- including the virtual space. Despite the current interest
in telehealth, the future of
healthcare delivery is likely to be
omnichannel -- combining telemedicine, retail clinics, on-demand
highly unpredictable times. During post-merger integration, to optimize performance and quality of care, leaders must prioritize the engagement of healthcare managers, physician leaders and nursing managers. Maximize The Value Of The Ecosystem. The healthcare system today is a complex web of interconnected stakeholders. And the ecosystem is expanding -- beyond the traditional players such as payers, providers, pharma and medical devices. In the post-pandemic world, the
care and more. Integrating these channels effectively will also require a significant change in leadership, as well as a more robust change management process to ensure that
new technology is utilized optimally. Manage Mergers Effectively.
Hospital M&A activity was at an all-time high in the years leading up to the pandemic. In 2019, nearly 100 healthcare mergers were announced -- but the COVID-19
crisis has put pressure on some of these deals. Post-pandemic, as the healthcare industry comes to terms with sustained losses, there might also be more significant pressure to consolidate. McKinsey research conducted before the pandemic showed that healthcare systems with more than 50% of the market share had 30% higher margins than those with less than 25% market share. And operating margins of systems that are investing in growth in distributed care settings outperform all other
ecosystem might look very different. For instance, service vendors have been experiencing more significant profit growth -- greater than 10% compared with other more traditional players. These service vendors, which include clinical services and financial services, are primarily growing because of advancements in analytics, big data and digital transformation. Proactive collaboration among players in this new ecosystem
The best hospitals will continue to prioritize an integrated strategy that promotes the quadruple aim through constant review and improvement of the patient and employee experiences.
will be critical for COVID-19 recovery. Further, real transformation in healthcare requires more significant linkages and synergy among these diverse players. Leaders in this ecosystem are all committed to the same goal -- transforming healthcare and improving accessibility -- yet make unique contributions and apply complementary strategies.
inorganic/M&A-type activity -- making them immediately more attractive. The hundred-odd mergers in 2019 were also unique because acquirers were not focused on obtaining “more of the same”; rather, they were looking for ways to expand their portfolios, market opportunities and service offerings. In a post-COVID world, maximizing merger
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The Business Review | February 2021
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