As the healthcare system continues its unprecedented trend of consolidation, driven by factors such as the rapid move to value-based care, many hospitals and health systems wonder how a merger or acquisition might affect their hard-earned brand identity and reputation. This session will explore that question in depth as speakers from Baylor Scott & White Health, the largest not-for-profit health system in Texas formed in 2013 after an $8.3 billion merger of two well-known healthcare organizations, share lessons learned and offer practical marketing and branding strategies.
5. TOGETHER WE ARE STRONGER
Satellite Outpatient Facilities Hospitals
Ambulatory Surgery
Centers
JV Emergency
Medical Ctrs
Senior
Health
Centers
Specialty Care
Clinics
Urgent Care Clinics Primary Care
Clinics
Patient Access Points Retail Pharmacies
6. Patient Encounters Annually Outpatient Registrations
Licensed Beds Affiliated Physicians
Employees Largest employer in Temple Largest Employer in DFW
In total assetsIn total operating revenue
$9.3 BILLION$7.3 BILLION
TOGETHER WE ARE STRONGER
7. INTEGRATION ACCOMPLISHMENTS
• One unified vision
• One system board
• Substantially all corporate service areas have been fully integrated
• Achieved synergy target of >$100 million annually
• Designed integrated programs for employee health, welfare and benefits
• Standardized employee review process
• Conducted quarterly integration employee survey
• Communicated new brand to employees, patients and communities served
8. CONTINUING INTEGRATION INITIATIVES
• Identify additional synergies and new technologies (synergy goal in FY2016 =
$143m)
• Continue integration of clinical service lines
• Complete the integration of Human Resources
• Modernize logistics through development of a consolidated distribution center
• Bring insurance options of the Scott & White Health Plan to North Texas
• Continue new brand rollout, including branding our hospitals by December
2015 (goal: 19 hospitals)
• Communicate new brand to employees, patients and communities served
9. INTEGRATION LESSONS LEARNED
• Naming leadership early is key
– For example, delay in naming our Chief Human Resources Officer resulted
in challenges meeting our targeted timelines.
• Never underestimate the impact of Culture
• Never underestimate the impact of Communication
• Geography continues to be a challenge
• Complexities involved in re-branding facilities
• Employees want the new brand!
11. GOALS OF THE PR STRATEGY
• Tell Our Own Story
• Build Momentum Around Proposed Merger
• Earn Positive Media Coverage
• Maintain an Open and Honest Dialogue
with Stakeholders
• Mitigate Risks
12. THE RISKS
• Inaccurate or Untimely Informal
Communication
• News Media Leak
• Negative News Media Angles
• Regulatory Approvals Pending
14. WHAT DID WE COMMUNICATE?
• Unified Board: A unified board of trustees will be comprised of 14
individuals with an equal number of representatives from each institution.
Drayton McLane, Jr., the chair of the Scott & White board of trustees, will
serve as chair of the new organization’s board. Jim Turner, the chair of the
Baylor Health Care System board of trustees, will serve as chair-elect of the
new organization’s board.
• Leadership: The new organization will be led by a single executive
leadership team. Joel Allison will serve as chief executive officer of the new
company. Dr. Robert Pryor will also serve as president and chief operating
officer of the new organization.
• Operations: The new system will have two operating divisions, which will
consolidate over time. The Scott & White division will be headquartered in
Temple, and the Baylor division will be headquartered in Dallas.
• Brands: The new organization will be called Baylor Scott & White Health.
Both Baylor and Scott &White will retain their individual brand names.
• Foundations: The foundations will remain separate.
• Medical Staffs: The medical staffs will remain independent.
For patients, the new organization will ultimately mean:
Greater, more convenient access to high-quality care through an
extensive network of physicians, advanced practice professionals,
medical centers and hospitals throughout North and Central Texas.
Increased coordination of patient care.
Improved patient outcomes, by combining the expertise of primary care
physicians, medical specialists and adopting the best practices of both
organizations.
The ability to attract, retain and train the very best national and
international talent.
Greater access to world-class primary and pediatric care and centers of
excellence in cardiology, oncology, transplant, rehabilitative medicine
and more.