Training Course on Mergers and Acquisitions in Healthcare

Module 1 – Introduction to Healthcare M&A Landscape
Theoretical Concepts:
Overview of global and regional healthcare M&A activity.
Strategic motivations: economies of scale, market access, technology adoption.
Types of M&A: horizontal, vertical, cross-sector, joint ventures.
Key drivers: aging populations, epidemiological shifts, cost pressures, digital health.
Risks of consolidation: reduced competition, quality and equity concerns.
Practical Application:
Group case review of successful (CVS–Aetna) and failed (DaVita–UnitedHealth) mergers.

Module 2 – Financial Valuation and Deal Structuring
Theoretical Concepts:
Valuation techniques: Discounted Cash Flow (DCF), comparables, precedent transactions.
Sector-specific challenges: valuing hospitals, insurers, biotech pipelines, and pharma.
Deal structuring approaches: stock vs. asset purchases, alliances, joint ventures.
Financing strategies: debt vs. equity, hybrid models, private equity participation.
Taxation and due diligence essentials.
Practical Application:
Hands-on financial modeling exercise: Build a simplified valuation for a mid-sized hospital.

Module 3 – Legal, Regulatory, and Compliance Considerations
Theoretical Concepts:
Antitrust and competition law in healthcare consolidation.
Regulatory compliance frameworks: HIPAA, GDPR, fraud and abuse laws (Stark Law, Anti-Kickback).
Regulatory approval process: health ministries, insurance commissions, cross-border regulators.
Intellectual property and patent considerations in biotech and pharma.
Labor and workforce issues: contracts, staff transfers, redundancy management.
Practical Application:
Case analysis of the Anthem–Cigna merger failure due to antitrust litigation.

Module 4 – Integration Planning and Risk Management
Theoretical Concepts:
Financial integration: harmonizing budgets, balance sheets, and reimbursement processes.
Operational integration: aligning procurement, supply chains, and clinical workflows.
Cultural integration: uniting profit-driven and mission-driven organizations.
Workforce integration: engaging physicians, managing unions, and preventing attrition.
IT integration challenges: EMR, ERP, billing systems, interoperability.
Risk frameworks for financial, compliance, and reputational risks.
Practical Application:
Workshop: Develop a post-merger integration roadmap for a hospital-acquisition scenario.

Module 5 – Strategic Insights and Future Trends in Healthcare M&A
Theoretical Concepts:
Emerging drivers: AI, telehealth, precision medicine, digital platforms.
The role of private equity and venture capital in healthcare consolidation.
ESG (Environmental, Social, Governance) concerns in healthcare investments.
Globalization and cross-border M&A in the health sector.
Policy reforms shaping future healthcare consolidation.
Practical Application:
Strategic debate: Consolidation vs. collaboration — which will dominate healthcare’s future?
Capstone Simulation: Teams design and present an M&A strategy for a fictional healthcare organization seeking regional expansion