FMG Leading Managing Principal Jennifer Perry prominently featured in new Modern Healthcare article discussing the impact of COVID-19 on the industry’s merger and acquisitions landscape.
Chicago, IL – April, 2020 – A 2020 article in Modern Healthcare (“Healthcare M&A Reshaped by COVID-19”) widely quotes the expertise of FMG Leading Managing Principal Jennifer Perry. The article, which uses the example of a proposed four hospital merger in Chicago’s south side, highlights the impact of the global health crisis on plans for hospital consolidation.
The article details the proposed merger of Advocate Aurora Health’s Advocate Trinity Hospital, Trinity Health’s Mercy Hospital and Medical Center, South Shore Hospital and St. Bernard Hospital. Under the terms of the proposed merger, the hospitals would join forces to downsize aging, underutilized facilities and create a new hospital and several community centers. It would require a $1.1 billion infusion of capital from the hospitals and their parent companies, private donations and the government.
Among various complications surrounding the proposed merger, Perry called out the human capital and strategic complexities of the deal. “Given the complexity of the deal, they have to spend time upfront clarifying their shared purpose and manage expectations,” she said. While the deal would likely benefit the community in the long run, the short term challenges are daunting. “It is good news for the South Side of Chicago, but there is a lot of work in human capital let alone structural and governance issues to make this deal happen,” she said.
The complete article can be found on Modern Healthcare here (subscription may be required) or on fmgleading.com here.
