Interview with: James Burgdorfer,Principal, Juniper AdvisoryWith the dramatic, ongoing changesin the healthcare industry, ...
About Juniper AdvisoryJuniper Advisory is an independent, privately-held investment banking firm dedicated to providing ou...
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What Hospitals Should Consider in Preparation for the ACA - James Burgdorfer, Juniper Advisory

James Burgdorfer of Juniper Advisory, an investment banking firm presenting at the marcus evans National Healthcare CXO Summit Fall 2013, regarding hospital consolidation trends that are the result of the Affordable Care Act. Interview with: James Burgdorfer, Principal, Juniper Advisory
Published on: Mar 3, 2016
Published in: Business      
Source: www.slideshare.net


Transcripts - What Hospitals Should Consider in Preparation for the ACA - James Burgdorfer, Juniper Advisory

  • 1. Interview with: James Burgdorfer,Principal, Juniper AdvisoryWith the dramatic, ongoing changesin the healthcare industry, hospitalsare considering their financial,operating, and market position andweighing whether it would be best tobecome part of a larger organization,says James Burgdorfer, Principal ofJuniper Advisory, a Chicago-basedinvestment banking firm. Because of theinefficiencies inherent in today’shealthcare industry, for many, theconsideration of a business combinationcould be the only way to ensure thesuccess of certain hospitals.Juniper Advisory is a solution providerat the marcus evans NationalHealthcare CXO Summit Fall 2013,in Los Angeles, California, October20-22.Why should hospitals considerMergers & Acquisitions (M&A)transactions?The hospital industry is undergoingdramatic, fundamental changes as aresult of major healthcare reformcurrently underway. Due to its size andfragmentation relative to other majorindustries, vast inefficiencies in thehospital industry are creating adownward pull on the US economy.Even as the Affordable Care Act (ACA)seeks to address the crisis by drivingdown costs, hospitals will face newchallenges as a result of decliningreimbursements and increasedcompliance spending.As costs surge and payments fall,economy of scale becomes the onlyoption for success. The formation oflarger and more efficient hospitalcompanies is one of the clearestsolutions to this fundamental challenge.How should hospital combinationsbe handled?The M&A process is relatively simple inconcept, yet extraordinarily complex inexecution. A major challenge is the factthat M&A transactions are non-recurring. Most hospital CEOs and boardmembers have not participated in thesale of a business before and have littleexperience with the mechanics of such aprocess.Additionally, relationships betweenmanagement and board members havethe potential to become strained undersuch pressures.For these reasons, it is advisable toinvolve an experienced transactionexpert to ensure the best possibleoutcome and provide the greatestassurance of success.What are some of the potential risksin this unchartered territory?The risks involved in a businesscombination transaction are greaterthan any other risk that a hospital CEOhas faced in his or her leadership role.A decision to sell the hospital mustinvolve a clear understanding of theindustry landscape, knowledge of thepotential partners, and a grasp of theneeds and objectives of the hospital andits leadership team.What growth opportunities do yousee in the industry?The overwhelming need right now is toreduce costs and increase efficiencies.This means that there are tremendousgrowth opportunities for companies thatcan provide technologically andmedically efficient modes of deliveringhealthcare.Any final words of advice?There is a traditionally held preferencefor local control amongst nonprofithospital leadership. Understandably,there is a strong psychological andemotional component to a hospitalboard that is considering a combinationwith another organization. Many do notwant to feel as if they are abandoningtheir independence and perceiveduniqueness. The key is to helpleadership realize that looking towardsthe hospital’s future is more importantthan holding onto the past.The M&Aprocessis relativelysimple inconcept, yetextraordinarilycomplexin executionWhat Hospitals Should Consider in Preparation for the ACA
  • 2. About Juniper AdvisoryJuniper Advisory is an independent, privately-held investment banking firm dedicated to providing our hospital industry clients withexpert merger and acquisition (M&A) and other strategic financial advice. We are the only experienced M&A group whose resourcesare focused exclusively on this industry. Our business is guiding our hospital system clients through complicated and economicallyimportant change-of-control transactions.www.juniperadvisory.comAbout marcus evans Summitsmarcus evans Summits are high level business forums for the world’s leading decision-makers to meet, learn and discussstrategies and solutions. Held at exclusive locations around the world, these events provide attendees with a unique opportunity toindividually tailor their schedules of keynote presentations, case studies, roundtables and one-on-one business meetings.For more information, please visit: www.marcusevans.comUpcoming EventsLong-Term Care CXO Summit - www.longtermcaresummit.comNational Healthcare CFO Summit - www.nhcfosummit.comNational Healthcare CNO Summit - www.nhcnosummit.comTo view the web version, please click here: www.nhcxosummit.com/JamesBurgdorferThe marcus evans Summitsgroups deliver peer-to-peerinformation on strategic matters,p r o f e s s i o n a l t r e n d s a n dbreakthrough innovations.Please note that the Summit is aclosed business event and thenumber of participants strictlylimited.About the National Healthcare CXO Summit Fall 2013This unique forum will take place at the Westin Long Beach, Los Angeles, California,October 20-22, 2013. Offering much more than any conference, exhibition or tradeshow, this exclusive meeting will bring together esteemed industry thought leadersand solution providers to a highly focused and interactive networking event.www.nhcxosummit.comContactSarin Kouyoumdjian-Gurunlian, Press Manager, marcus evans, SummitsDivisionTel: + 357 22 849 313Email: press@marcusevanscy.comFor more information please send an email to info@marcusevanscy.comAll rights reserved. The above content may be republished or reproduced. Kindlyinform us by sending an email to press@marcusevanscy.com

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