The failed merger of United Healthcare and Humana is putting the organizations' communications strategies to the ultimate test.
The task is to convince internal and external audiences that the two companies were viable before the intended merger, and remains so. When the merger was announced May 28 it was likened to the Daimler-Chrysler mega-merger in the automotive industry.
Now the two organizations are in "save-face" mode as they provide rationale for breaking the deal to core audiences, including the media, investment community and employees.
The merger was called off earlier this month because of United's projected "operating realignment costs" of $900 million, primarily due to losses on Medicare earnings.
The bigger challenge emerging from this well-publicized flop is conveying to an already skeptical public that healthcare mergers are viable business solutions for delivering high-quality care.
For Humana, which reportedly initiated the decision to kill the merger, the communications strategy involved developing a template on Aug. 6, when United's $900 million charges was first announced, for two possible announcement scenarios: plans to renegotiate the deal or the decision to terminate, says Tom Noland, Humana's VP of corporate communications.
And for United, the internal communications messages focused on the company's realignment goals and future viability.
In this M&A Watch, we profile the PR strategies of both organizations.