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The COVID-19 pandemic has forced healthcare companies to rethink how they structure mergers and acquisitions, especially now that much of the work is happening remotely.
The once-in-a-lifetime crisis has changed the way providers discuss deals, write contracts and assess their potential partners. Remote meetings, COVID-19 recovery timelines and digital health capacity are a new, or bigger, part of the due diligence process.
What’s more: Health systems are doing it all while managing recurring waves of seriously ill COVID patients and the challenges of maintaining adequate staff and supplies during a pandemic.
“It was in many ways the ultimate example of changing the tires as you’re going down the freeway,” said Dr. Gary Kaplan, co-CEO of Virginia Mason Franciscan Health, a new system with $4 billion in annual revenue formed through the January merger of Seattle-based Virginia Mason and Tacoma, Wash.-based CHI Franciscan.
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Washington state faces a setback in the fight for universal health care. In July, two health care networks 100-year-old Seattle-based Virginia Mason and Tacoma-based CHI Franciscan announced their intention to merge. Despite claims to the contrary, this merger or “affiliation” is an acquisition in all but name and represents the increasing monopolization of health care. In addition, the merger will further reduce access to end-of-life options and essential health care for women, despite the legal codification of abortion rights, birth control and death-with-dignity in the state.
CHI Franciscan is part of CommonSpirit Health, the largest Catholic health system and the second-largest non-profit hospital chain in the United States. Spanning 18 states and 104 hospitals, CommonSpirit Health is a so-called “cradle to grave” health care network, offering services spanning pregnancy, birth, wellness, and end-of-life care, including assisted living, palli