Who: Universal Health Services to acquire Prince William Health System in Manassas, Va. Universal will put $105 million in a new foundation in exchange for the assets of Prince William Hospital.
When: Prince William's board is considering Universal's letter of intent, issued Dec. 15, and is expected to make a decision in the next few months.
Key Issues: Universal's proposed acquisition is rubbing some in the community the wrong way. The primary issue is the community's perceived loss of control and ownership of Prince William, a private nonprofit provider. The community also has concerns that Universal, a for-profit provider, will not keep Prince William's community mission intact.
The internal pulse is positive, most employees and physicians consider the proposed Universal affiliation as a viable way to expand healthcare services. In terms of job security, Universal is offering jobs to all of Prince William's 1,300 employees.
M&A Campaign: The idea that Prince William may be sold has become an emotional issue for the community, says Donna Ballou, who heads up Prince William's PR department.
She's also had to address a few inaccuracies the local media has reported about the nature of the deal and why Prince William is selling.
Coverage of the proposed acquisition includes the three community newspapers and the Washington Post.
To correct misinformation and address the community's concerns about the acquisition, Prince William posted a press release on its Web site at http://www.pwhs.org with more than 10 bullet points of clarification.
Highlighted points include:
- The possible development of a new foundation that would contribute to worthwhile community causes, including a free clinic, AIDS education and immunizations.
- The top four reasons the hospital board says it needs to affiliate, which are: increasing revenue pressures; increasing cost of equipment; rates controlled by managed care organizations and increasing government regulation.
- The overall managed care climate which hospitals like Prince William are faced with, results in the need to affiliate with a larger healthcare system.
In addition to the press release, the hospital also has held two press conferences, organized community forums, run full page ads in community newspapers about the benefits of the deal and reported on the negotiation status in its internal newsletters.
So far, these efforts seem to be allaying the community's concerns about the future of the hospital, says Ballou. She doesn't expect to win over everybody. "A certain [community] segment will always be difficult to reach; it's important to keep the lines of communication as open as possible."
Universal's PR department, headed by Richard Wright, has not yet worked with Prince William as a coordinated team. Once the deal moves forward, it plans to emphasize its 20-year track record of acquiring nonprofit hospitals and keeping the employees intact.
Universal messages will also highlight the opportunity for business development and seamless transitions for physicians, employees and the community.
(Prince William, Donna Ballou, 703/369-8322; Universal, Richard Wright, 512/578-4460)