Mergers & Acquisitions
It’s no surprise that health plans are engaging in M&A at a fast pace. As the importance of scale continues to grow for the industry, in addition to finance, IT, talent and the melding of cultures, health care adds angles like care coordination, reimbursement structures and regulatory compliance. So while health care companies have more reasons to pursue M&A, there are also more moving parts to get right.
Reaching for scale? Combine quickness and care to build value
Scale is more important for health plans than ever. Much of the market is shifting to public-sector payment structures—including Medicare, Medicaid and health insurance exchanges—where having the capacity to compete is important. And it’s hard to come up to speed, fast enough, without turning to third parties—to form alliances or to combine outright.
But knowing you have to consolidate is only the beginning. It’s just as important to know what you aim to achieve, how to make it happen and what pitfalls are waiting. Health industry leaders have turned to Deloitte to help navigate their most complex, critical transactions. Our teams aren’t just M&A specialists. They’re health care M&A specialists, versed in your business, who support deals throughout the full lifecycle.
The expected benefits of a strong M&A strategy may include synergy opportunities related to integration strategy, revenue growth, operating expense savings, asset efficiency and the cost of capital reduction. More importantly, the right approach can help improve the value of the new company—a major issue, according to a recent Deloitte study of 44 transactions between 2006 and 2012 that found that fewer than half of the deals led to sustainable improvements in market value three years after the deals closed.
About the Deloitte Center for Health Solutions
About the Deloitte Center for Health Solutions: The source for health care insights.
Growth and Scale
Discover how Deloitte can help as the group health plan market declines and there is a renewed focus on scale and capabilities.
Learn more about the solutions we offer life sciences companies as they adapt in an era of transformation.
Anticipating tomorrow's complex issues and new strategies is a challenge. Stay tuned in with Dbriefs – live webcasts that give you valuable insights on important developments affecting your business. Dbriefs offers live webcasts featuring practical knowledge from Deloitte specialists.
Life at Deloitte
People make Deloitte one of the best places to work. What’s great about the people? That’s an easy answer. They are exceptional. Each person is unique and valued for that, among the best and brightest in the business, and takes pride in his or her achievements and the success of others.