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Mergers & Acquisitions
Health Plans
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.
Potential benefits
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.
Potential benefits
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