Merging healthcare facilities can offer new opportunities for growth, patient access, and financial efficiency. However, these benefits come with real risks. Poorly managing the process of healthcare mergers and acquisitions can cause billing disruptions, damage payer relationships, and lead to costly delays.
Whether you’re taking over a location or joining several facilities into one, you need to know what mistakes to avoid. Below, we’ll break down the most common pitfalls during healthcare acquisitions and how to stay clear of them.
1. Overlooking Contract and Credentialing Gaps
One of the biggest mistakes providers make during a merger is failing to properly review payer contracts. Payers often tie insurance agreements to specific tax IDs, locations, and service lines. When two facilities merge, those details may change, making existing contracts outdated or invalid.
Problems that can follow include:
- Denied or delayed reimbursements
- Forced re-credentialing that halts payments
- Mismatched contract terms across merged entities
Before finalizing any merger, conduct a full payer contract review to identify what must be renegotiated or updated.
2. Rushing Through Compliance and Licensing Checks
Each healthcare facility must follow local, state, and federal regulations. Merging two facilities means combining their compliance histories—and their potential liabilities. If one location has problems or missing licenses, those issues don’t go away in a merger—they become your responsibility.
Skipping this step could result in:
- Fines or legal action from regulatory agencies
- Disruption in service due to licensing gaps
- Long-term reputational damage
Avoid risk by performing detailed compliance and licensing audits before merging.
3. Failing to Align Operational Systems
Mergers often bring together different billing systems, electronic medical records, and administrative workflows. Failing to plan how to combine these systems and processes can cause your team to fall behind, leading to confusion and payment delays.
Operational misalignment can cause:
- Slower claims submission and payment processing
- Duplicate work or inconsistent documentation
- Patient dissatisfaction due to billing errors
A well-managed transition should include a plan to integrate systems and workflows as early as possible.
4. Not Planning for Contract Renegotiation
A new ownership structure is a perfect time to update payer agreements. But many healthcare organizations keep old contracts in place, assuming they’ll work just as well after the merger. This often results in missed opportunities to improve reimbursement rates or streamline terms across the newly merged entity.
After any healthcare acquisitions, you should:
- Review contract rates for all payers involved
- Identify inconsistencies or outdated clauses
- Engage in negotiations to create unified, updated contracts
Failing to renegotiate puts your financial future at risk.
5. Assuming One-Size-Fits-All Will Work
No two facilities are exactly alike. What works for one may not work for another, especially in a merger. It’s important to consider the differences in services, patients, and payer relationships when planning after a merger.
Trying to apply the same structure or policies to every merged location can lead to:
- Staff frustration and turnover
- Service disruptions
- Uneven patient experiences
Customize your approach to fit the strengths of each location while building a unified organization.
How AT Contracting Solutions Can Help
Merging facilities requires more than legal paperwork—it demands a smart, strategic plan that protects your contracts, maintains compliance, and positions you for long-term success.
AT Contracting Solutions helps healthcare providers avoid the most common pitfalls of healthcare mergers and acquisitions. We provide:
- Full payer contract reviews and updates
- Credentialing support for all merged providers and locations
- Strategic planning for system integration
- Contract negotiation to align terms across facilities
If you’re planning a merger or acquisition, our team helps you transition smoothly, build better payer relationships, and protect your revenue from the start.
Contact AT Contracting Solutions today to learn how we can simplify your healthcare acquisition and help you avoid the risks that come with merging facilities.
