Issue link: https://beckershealthcare.uberflip.com/i/462190
18 Financial Management CEAA CERTIFIED EQUIPMENT APPRAISAL ASSOCIATES, INC. Call us at (215) 260-2680 for a FREE consultation. For more information, visit us on the web at www.ceaahealthcare.com or email us at ceaahealthcare@aol.com CEAA CERTIFIED EQUIPMENT APPRAISAL ASSOCIATES, INC. Certifi ed Equipment Appraisal Associates, Inc. is a leading nationwide medical equipment appraisal fi rm offering comprehensive medical equipment appraisals for the healthcare industry. We have conducted over 2,000 Healthcare Equipment Appraisal Assignments in all 50 states. We can appraise a single unit of medical equipment to fully equipped private practices, clinics, imaging centers and entire hospitals. On-Site & Desktop Equipment Appraisals for: When Compliance Matters, Get Certifi ed. • Purchase price allocation • Hospital and physician practice valuations • All healthcare equipment types • Stark Law, SBA, FASB & IRS compliance • Lease negotiations • Partnership buyouts • Litigation and expert witness • Asset inventory • Sale of assets • Cost segregation • Financing Numerous issues can materialize after a hospital or health system transaction has closed. However, there are steps organizations can take to help ensure they aren't a party to a failed deal. There is rapid consolidation in the healthcare industry today. Large health systems are expanding their market presence by acquiring hospitals seeking financial sustainability, and some hospitals and health systems providing relatively the same quality of services are coming together to become more efficient. A byproduct of increased consolidation is an uptick in relationships that are suspended or called off. Before entering into deals, hospital and health system CEOs and CFOs thoroughly evaluate the other organization involved in the transaction, but how can they ensure there won't be any post-deal dilemmas? Is the timing right? When a hospital or system is contacted by an organization interested in part- nering, affiliating or merging, the evaluation process begins immediately. "Systems shouldn't merge just to merge," says Jeff Hillebrand, who served as COO of Evanston, Ill.-based NorthShore University HealthSystem from 1995 to 2012 and is now the owner of JNH Consulting. "There must be sound rea- soning, good strategic value and market impact to justify the time and energy required to execute a relationship," he says. If it is clear none of those items are going to be achieved through the transaction, either the timing of the deal isn't right or the other organization involved isn't the best fit. Strategic considerations If it is the right time to pursue a transaction, there are a number of items to consider, and C-level executives must work together and undertake a struc- tured evaluation process. This step involves identifying key stakeholders (the community, patients, physicians, employees, taxpayers, etc.) that will be affected by the potential transaction, according to Victoria Poindexter, principal at H2C, a strategic advisory and investment banking firm with an exclusive focus on healthcare. She says hospitals or health systems considering a transaction should ask the following three questions: The Ultimate Transaction Guidebook: How to Keep Your Hospital From Singing the Post-Merger Blues By Ayla Ellison