The past decade has brought about broad cultural changes in the operation and formation of health care and health science entities. While internal change is at work regarding the operation of medical institutions—in research, development, business strategy and expanded physical construction—that change is being multiplied and complicated by the growing number of mergers, acquisitions and consolidations of every type of health care entity, including hospitals, physician practice groups, life science companies, long-term care providers, and health plan companies.

While attention has been focused on changes in patient care and on the economic benefits engendered by increased business activities, less attention has been paid to the increasing employee-related side effects that can include unnecessary workplace disputes, union contract issues and costly litigation.

This article will provide a template for issue-spotting the possible employment- and labor-related challenges that arise regularly during the course of these processes, and will provide a concise checklist of best practices for effectively achieving anticipated growth opportunities within the process.

Potential Risk

Understanding the employment issues a consolidation transaction creates is critical, and must be addressed at the outset of any plan to merge, acquire or otherwise join two existing business entities. Entering into transaction conversations without identifying and confronting these issues is both risky and short-sighted.