There were 98 mergers and acquisitions (M&A) among hospitals and health systems in 2013, up 3 percent from 2012, and more than 50 percent from 2010, according to a survey by Kaufman Hall. According to the Healthcare M&A Watch, a Modern Healthcare report, the deal volume in hospital mergers has shrunk while the value per deal has risen in the first quarter of 2014.
As the ongoing pace of M&As continues to be unrelenting, how do you craft your case for support around mergers? Regardless of the size of the constituencies involved in the merger - whether a large system is acquiring a smaller institution or the other way round - structuring an effective case for your ask may become challenging. However, there are some opportunities as well.
Challenge - Too Big to Support: Even some of your most loyal donors may be set back by the growing size of the institution questioning whether their help is needed at all.
Opportunity: The conversation about the size of the institution can be led in a positive direction by describing the benefits of a larger system to the existing and future patients. And thus the bigger impact their gift can make.
Challenge - Shifting Culture Through Growth: Others may find the idea of supporting a big conglomerate in various geographic locations hard to adjust to.
Opportunity: It is important for the development team to communicate early on that the gift can stay local and be directed to particular interests of the donor.
In the midst of a merger, continuous and open communication becomes a priority. Telling your donors the story of the merger and its positive outcomes further strengthens your relationship with the donors without letting them make unnecessary assumptions.
What has your experience been engaging physicians in the philanthropic effort? Leave a comment below or contact Adam Wilhelm, Senior Consultant, Campbell & Company.
About the Campbell & Company Healthcare Practice The Campbell & Company Healthcare Team are experts in healthcare philanthropy and staff management. We understand the context in which healthcare organizations operate, and create a structure and process within that context, tailored to your community, that allows philanthropy to grow. For 37 years, we have helped hundreds of healthcare institutions succeed in growing and sustaining their programs.
Campbell & Company maintains offices in Chicago, Los Angeles, Portland, the San Francisco Bay Area, Seattle and Washington, DC. For more information, please visit www.campbellcompany.com