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As the M&A market overall continues to crawl slowly forward, it is reassuring to see that healthcare deals are still plowing ahead and large transactions are on the rise despite ongoing headwinds. UCI Health, University of Minnesota, Northwell Health, and HATCo were all involved in mega-mergers earlier this year that left many leaders reflecting on a promising start to the year while looking ahead to what is next on the horizon.
But no deal is truly done until the integration process is complete. Unifying leadership, benefits, financial systems, cultures, and technology are just as important as what comes before. The healthcare industry is becoming increasingly more tech-focused and reliant, so the seamless integration of critical systems is key to ensuring continued outstanding patient care and creating unified teams. Everyday adjustments that both care providers and operations managers have to make as integration begins must be taken just as seriously as the impact of higher-level enterprise-wide changes.
Healthcare executives who want to navigate the integration process successfully should take the below three steps to best align their people with the vision of the newly combined organization.
Cultivate leadership at every level
Regardless of their size, successful integration of healthcare organizations is a huge undertaking that requires support and advocacy from employees across the organization. M&A presents opportunities for teams to rally and leaders to help create something unique from the best parts of two organizations. The best way to do so is by ensuring that all employees, whether on the administrative side or clinical side, are enabled and empowered to lead. Organizations that function more ‘diagonally’ often find that there is greater agility and ability to successfully address any worries or roadblocks that arise as processes evolve. Team members who are empowered to voice their opinions and lead tend to increase their level of engagement within their role, enabling them to think in more creative ways, and making it possible to maximize new opportunities. The ability to share ideas, identify roadblocks, and suggest solutions knowing that each person’s insights will be valued regardless of title becomes a crucial asset as cultures blend and organizations adapt to the merger. Cultivating leadership at every level also makes it easier to foster trust among teams.
Engage a volunteer army
Leading organizations through the integration process requires recruiting ‘champions’ of the process along the way to maintain morale and productivity while ensuring there isn’t a dip in the quality of care or revenue from productivity declines. By enlisting these champions who have demonstrated an interest in what comes next – or creating what we call a ‘volunteer army’” – you can generate buy-in for the newly-blended organization from the ground up. Champions who understand the vision and the role they play in bringing it to life are a large piece of the puzzle. Similar to empowering leaders of all levels, having this volunteer army of folks willing to raise their hands, maintain a positive and productive outlook, and who understand the value of doing so will help maintain orboost morale during what can be a stressful transition.
Foster clear, ongoing communication
Two-way communication is undoubtedly one of the most critical aspects of integration from the moment a deal closes well into the following months. Practicing transparency by being proactive and direct about what is happening and when (within the bounds of the required legal confidentialities) can dispel rumors and any unnecessary stress from the start. Clear communication about the organization’s direction and how each team member’s role is essential in bringing the future-state to life will keep employees in ‘thrive’ mode, avoiding a frenzy or shift into ‘survive’ mode, which ultimately causes burnout and lower levels of patient care. Each stage of the merger and integration should be clearly defined so that employees and their managers know what to expect and when to expect it. This allows them to better take each step in stride to maintain morale, evolve culture, and keep teams engaged and productive. Especially during the integration process, sharing who the senior leadership team will be, how the brand will or will not change, and what the day-to-day impacts will be can help each employee understand and process how this will or will not directly affect them.
For healthcare mergers and acquisitions to be successful, the integration process must be effective and given as much attention as the deal itself. Leaders must be intentional and considered in their approach when bringing together personnel, systems, and cultures to form a net-new organization. Through cultivating leadership at all levels, engaging a “volunteer army” internally, and fostering clear and ongoing communication, they can navigate this turning point in the business while maintaining outstanding patient care and team engagement. Whilst it is only natural that M&A’’s will bring some pain points, having an empowered workforce united on a shared vision can help maximize the opportunities, rather than the challenges that may be faced. The commitment to the core mission and vision from leadership will ultimately determine the success and potential benefits of healthcare M&A.
