Health Care partner Thomas Jeffry spoke with Becker’s Hospital Review and provided an overview of four areas that hospitals can focus on to avoid potential missteps when working on financial transactions.

The article reported that “the current healthcare environment has created one of the most active hospital and health system consolidation markets in decades. This is partially driven by provider responses to the challenges and opportunities created by national and state healthcare reform. Healthcare transactions implicate a vast body of business, patient, physician and legal considerations, complicating the process and leaving many opportunities for missteps.”

Mr. Jeffry told Becker’s that while it can be easy to get caught up in potential positives from an acquisition, such as higher market share or greater scale, nothing should be considered a guarantee to materialize.

“Increasing market share may not necessarily increase net revenues depending on a variety of factors such as payor mix, cost structure of the acquired entity, need for capital expenditures and debt incurred or assumed,” says Mr. Jeffry. “I think [hospitals] always need to do a reality check. How is this going to affect the bottom line post-transaction?”

To read the entire interview, please click here.