- Illinois/Missouri: Ascension has signed a non-binding letter of intent to acquire Chicago-based hospital system Presence Health. Under the agreement, Amita Health—a joint venture established by Ascension's Alexian Brothers Health System and Adventist Midwest Health—would operate all of Presence's medical centers, outpatient facilities, and other care locations. Meanwhile, Ascension's senior care subsidiary, Ascension Living, would manage Presence Life Connections. The systems said they will produce a definitive agreement "pending detailed legal and financial due diligence, along with regulatory and canonical approval" (Gooch, Becker's Hospital Review, 8/22; Jones Sanborn, Healthcare Finance, 8/22).
- Kentucky: Louisville has expanded the city's smoke-free ordinance to bar the use of electronic cigarettes and hookahs in public places and worksites. The changes took effect Monday, after the Louisville Metro Council voted in May to adopt them. The Louisville Metro Department of Public Health and Wellness said enforcement remains the same. Establishments could face possible fines between $50 to $500 for violating the ordinance (AP/Sacramento Bee, 8/21).
- Massachusetts: Dunkin' Donuts has awarded $30,000 to Shriners Hospital for Children. Dunkin' Donuts raised $20,000 of the funding through a local effort on national iced coffee day, while $10,000 comes from its Joy in Childhood Foundation. The funding will go toward the hospital's new acute rehabilitation unit and help upgrade the outpatient cast room (Paavola, Becker's Hospital CFO Report Review, 8/21).
M&A—To What End?
The health systems that are most successful in M&A are committed to intentional corporate strategy. They judge the value of potential affiliations, mergers, and acquisitions based on how they help deliver a better product to patients and purchasers—not how effectively they insulate the system from competition.
Keep reading to explore five characteristics of intentional corporate strategy.