HealthLeaders Media and Bank of America Merrill Lynch Release New Report in "Executive Insight" Project

Press Releases, April 9, 2013

HealthLeaders Media and Bank of America Merrill Lynch Release New Report in “Executive Insight” Project

Second report focuses on the key consolidation strategies healthcare executives are implementing to gain growth in market share and profitability

Danvers, Mass. – April 9, 2013 – HealthLeaders Media, a division of HCPro, Inc., together with Bank of America Merrill Lynch, have released a new research report as part of their yearlong collaborative “Executive Insight” project, designed to provide healthcare executives with insight into the economics of their industry. It is the second installment of a four-part series consisting of quarterly buzz surveys on industry topics, Executive Insight reports analyzing the results of each survey and executive roundtable discussions with senior finance executives from Bank of America Merrill Lynch and top provider organizations.

The report, entitled Capital Finance: Industry Consolidation, elaborates on the results of this month’s buzz survey on capital funding and provides more insight into the rising culture of mergers, joint ventures, acquisitions and strategic alliances.

“As the industry continues to consolidate, the need for strategic and creative planning, partnering, and financing is essential for all healthcare organizations,” says John Hesselmann, Specialized Industries executive at Bank of America Merrill Lynch. Part of the company’s Global Commercial Banking business, Specialized Industries provides healthcare clients with such solutions as core credit and treasury management, and also helps provide leasing, retirement capabilities and other capital-raising products.

Based on the survey data, many healthcare organizations are following similar strategies when it comes to acquisitions and affiliations. Organizations increasingly say they expect to acquire or partner with another, rather than be bought. They also cite expanding their geographic footprint as the predominant reason for their consolidation efforts. 

For a majority of respondents, expansion will take place in the primary care and physician practices. Organizations are evaluating and prioritizing these growth opportunities based on their desire to penetrate new markets and/or on their financial goals. “Hospitals in particular are conducting extensive market-by-market analysis to define their long-term integration strategy and which pieces of the continuum-of-care puzzle they want, or may need, to own,” says Philip Pucciarelli, managing director for healthcare investment banking at Bank of America Merrill Lynch.

The report also draws on the expertise of Texas-based LHP Hospital Group, Inc., which provides equity capital and management guidance to its not-for-profit joint venture partners. LHP CEO Dan Moen discusses the primary drivers of consolidation, the regulatory factors that shape the M&A environment, and the culture and chemistry of successful partnerships.

“No one wants to sell their hospital, but many hospitals realize they need to be a part of a larger network and begin looking at strategic alternatives,” says Moen.

As a supplement to the “Executive Insight” research, HealthLeaders Media has also launched a dedicated Executive Insight Center microsite on HealthLeadersMedia.com (www.healthleadersmedia.com/eic), featuring an array of custom content and additional expert analysis.

The next project in the collaboration between HealthLeaders Media and Bank of America Merrill Lynch is scheduled for an August launch and will focus on the skills that healthcare executives need to engineer the merger of clinical and financial priorities.

HealthLeaders Media

HealthLeaders Media, a division of HCPro, Inc., is a leading multi-platform media company dedicated to meeting the business information needs of healthcare executives and professionals. As an integrated media company, HealthLeaders Media includes HealthLeaders magazine, HealthLeadersMedia.com, the HealthLeaders Media Intelligence Unit, HealthLeaders Media Rounds events, HealthLeaders Media Breakthroughs reports, and California HealthFax. All these platforms may be found online at www.healthleadersmedia.com.

Bank of America

Bank of America is one of the world’s largest financial institutions, serving individual consumers, small- and middle-market businesses, institutional investors, large corporations and governments with a full range of banking, investing, asset management and other financial and risk management products and services. We serve approximately 53 million consumer and small business relationships with approximately 5,500 retail banking offices and approximately 16,300 ATMs and award-winning online banking with 30 million active users. Bank of America is among the world's leading wealth management companies and is a global leader in corporate and investment banking and trading across a broad range of asset classes, serving corporations, governments, institutions and individuals around the world. Bank of America offers industry-leading support to approximately 3 million small business owners through a suite of innovative, easy-to-use online products and services. The company serves clients through operations in more than 40 countries. Bank of America Corporation stock (NYSE: BAC) is a component of the Dow Jones Industrial Average and is listed on the New York Stock Exchange.
 
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