Kaufman Hall Advises Greenville Health System and Palmetto Health on Planned Partnership

SKOKIE, Ill. – August 30, 2017 – Greenville Health System (Greenville) and Palmetto Health (Palmetto) recently announced their intention to come together to form a new health company for South Carolina.

Kaufman Hall is serving as the exclusive advisor to both parties in this facilitated partnership which is expected to be completed later this year. Kaufman Hall’s role has involved assisting Greenville and Palmetto with the development of a comprehensive evaluation and exploration of a potential partnership. The evaluation included an assessment of the national, regional, and state healthcare landscapes.

Common beliefs emerged from the evaluation: the goal to improve the health and well-being of the people of South Carolina and beyond, the need to align incentives to create vehicles for clinical and economic integration with partners – clinicians, payers, and other healthcare provider – and the desire to serve as an engine of innovation and economic development for South Carolina. The parties jointly engaged Kaufman Hall to act as the exclusive facilitator to pursue a deeper relationship.

Kaufman Hall has managed all aspects of the partnership for Greenville and Palmetto, including developing the business case which would provide the strategic and financial rationale for the partnership, developing individual and consolidated financial plans, identifying key synergy opportunities, assessing capital market implications, and negotiating key issues and terms of the partnership.

Together, Greenville Health System and Palmetto Health will be:

•The largest health system in South Carolina with 13 hospitals and hundreds of physician practices and ambulatory centers serving 1.2 million patients annually, and generating $3.9 billion in annual net revenue, the majority of which is reinvested to support our core mission

•A convenient healthcare provider to nearly half of South Carolinians, who will be within 15 minutes of one of the system's locations

•One of the 50 largest healthcare systems in the country

•South Carolina’s leading provider of charity and uncompensated care, offering hundreds of millions of dollars worth of care annually, and providing nearly one-third of the state’s Medicaid services

•The largest private employer in South Carolina with more than 28,000 team members and 2,800 physicians

Learn more about Kaufman Hall’s approach to helping executive management and board teams understand key considerations and the process recommended for partnership exploration in this Guide to Health Care Partnerships for Population Health Management and Value-based Care.

To learn more about how Kaufman Hall is assisting healthcare organizations with other strategic partnerships, contact Deborah Pike at DPike@kaufmanhall.com or 847.441.8780.

About Kaufman Hall

Kaufman Hall provides management consulting and software to help organizations realize sustained success amid changing market conditions. Since 1985, Kaufman Hall has been a trusted advisor to boards and executive management teams, helping them incorporate proven methods into their strategic planning and financial management processes, and quantify the financial impact of their plans and strategic decisions to consistently achieve their goals.

Kaufman Hall services use a rigorous, disciplined, and structured approach that is based on the principles of corporate finance. The breadth and integration of Kaufman Hall advisory services are unparalleled, encompassing strategy; financial and capital planning; cost transformation; treasury and capital markets management; and mergers, acquisitions, partnerships, and joint ventures.

Kaufman Hall software includes the Axiom Healthcare Suite, providing sophisticated, flexible performance management solutions that empower finance professionals to analyze results, model the future, and optimize organizational decision making. Solutions for long-range planning, budgeting and forecasting, performance reporting, capital planning, and cost accounting deliver decision support, reporting, and analytics within an integrated software platform. Kaufman Hall’s Peak Software empowers healthcare organizations with clinical benchmarks, data, and analytics to provide a higher quality of care for optimized performance and improved patient outcomes.