1. Strategic Plan for Acquisition of Altru Health
System
Julie Bentley
HCS/586
March 28, 2016
Dianne Nelson

2. Mayo Clinic Health System to
Acquire Altru Health System
• Competition buy-out.
• Growth of new market territory, academics,
members, and research facilities.
• Expansion of new market interests.
• Public health and new market interest for
Young Adult Medicine.
• Public marketing for Child and Adolescent
Obesity Market and Decrease.

3. Acquisition Mission, Vision
and Values
Mission: “To inspire hope and contribute to health and well-being by
providing the best care to every patient through integrated clinical practice,
education and research” (Mayo Clinic, 2016).
“Improving Health, Enriching Life” (Altru Health System, 2015)
Vision: “The Mayo Clinic Health System will provide an unparalleled
experience as the most trusted partner for health care” (Mayo Clinic,
2016).
Values:
• Respect * Innovation
• Compassion * Stewardship
• Integrity
• Healing
• Teamwork
• Excellence

4. Acquisition Mayo and Altru
Health System Goals
3rd Year –
• Upgrade current computer and technology systems at Mayo and
Altru. Start date is January 1, 2017 with completion September
30, 2017.
• Promotion of expert medical services in area with medical
services catered for young adult and adolescent health care
needs.
• Promotion of healthier lifestyle for all age populations in region
and area. Completion in 2-4 years with measurement standards
reported yearly to Mayo Clinic Health Care System. Increase of
promotion by 10-20% by 2018.

5. Acquisition Mayo and Altru Health
System Goals Continued
4th Year –
• Reassessment of SWOT analysis for additional strengths,
weaknesses, opportunities, threats and performance gaps.
• Long-term range goals for increased research and development
for growth for medical expertise and new medical technology
changes.
• Measurement of community public health use - increase by 10-
20% by 2018.
• Obesity Decrease – Adults 23% to 20%.
High School – 14.1% to 12%.
Child – 15 % to 10%.

6. Acquisition Mayo and Altru Health
System Goals Continued
5th Year –
• SWOT analysis continues.
• Health Assessments in younger aged patients to
review current strategic plans for obesity, drug and
alcohol abuse in area, mental health needs, and
colorectal cancer decreases due to environmental
concerns. Colorectal cancer decrease in new cases
by 10-15%.
• Financial Resources long range plans assessment –
long-term trusts for capital. Increase in trusts by 18 –
35%.

7. Environmental Scan (SWOT)
Strengths
• Altru Health System is part of an Academic University of North
Dakota Medical School.
• Has additional academic resources for biochemistry, molecular
biology, physics, epigenetics, research and development.
• Over 4000 Health Professionals that serves 200,000 plus
population in Northeast North Dakota and Northwest Minnesota
area for over 100 years.
• Medical expertise with addition of Mayo Clinic Health System
tele-medical capabilities. Part of the Mayo Clinic Health
Network.
• Community Involvement for obesity, binge drinking/alcohol
consumption, financial barriers that impact health care,
colorectal cancer decrease, and educational programs that
increase preventative health use.

8. Environmental Scan (SWOT)
Weaknesses
• New Participants in Health Care Industry arena in
region and area.
• Lack of medical expertise for severe/critical disease
processes.
• Loss of reimbursement systems due to regional and
area political influences and environmental
concerns from agricultural industry.
• Loss of experienced staff and medical experts in
area and region.
• Environmental disasters due to weather anomalies
in past - need strong contingency planning for
region disasters and region shutdowns.

9. Environmental Scan (SWOT)
Opportunity
• Younger patient medical needs - adolescents, young adult
due to being near academic University, obesity needs,
strong area of alcohol and drug medical conditions,
behavioral health issues, Large area of colorectal cancer
diagnosis, Less preventative care promotion area.
• Attachment to a fine Academic University in North Dakota
with a medical school and academic research.
• Only medical facility in Northeastern North Dakota and
Northwestern Minnesota area.
• Promotion of expert medical services to increase
population transfer or growth.
• Promotion to draw other large employers Headquarters to
area and region.

10. Environmental Scan (SWOT)
Threats
• New Participants in Health Care Industry arena in
region and area.
• Lack of medical expertise for severe/critical disease
processes.
• Loss of reimbursement systems due to regional and
area political influences and environmental concerns
from agricultural industry.
• Loss of experienced staff and medical experts in area
and region.
• Environmental disasters due to weather anomalies in
past - need strong contingency planning for region
disasters and region shutdowns.

11. Financial Plan for Acquisition of Altru Health
System
• Opens up New Market Entry for Young Adult and
Child and Adolescent Obesity patients for continued
revenue.
• Capital expenditures and additional resources from
new and current trusts.
• Altru Health System becomes a “resource bundle.”
• Year 1 & 2 Revenues decreased due to assets and
revenues being used for acquisition purposes.
• Additional market resources for new patients
(Marketing and Advertising utilization).

12. Financial Plan for Acquisition Budget
• Total Assets of Joint Systems
$502,851,778
• Total Liabilities of Joint Systems
$ 28,641,919,80
• Market Share
$ 79
• ROI (per patient)
$ 23.42

13. Internal Resources and Financial Capabilities
Affect on Financial Plan and Implementation
• Strengths and Opportunities far outweighed the
threats and weaknesses of both health systems.
• Weaknesses can be turned around within 1-3 years.
Weaknesses will become strengths as medical
expertise increases with acquisition.
• Technology upgrades of current system is integrated.
• Threats of continued new entry will continue to be
monitored and evaluated throughout the acquisition
due to competitive outbidding for Altru Health System
or take over region with other health care system.

14. Acquisition Measurement Guidelines
1) Determine what to measure – child and adolescent obesity decreases and
increases (BMI).
2) Colorectal cancer new case numbers.
3) Community Public Health Use of Young Adult medicine.
4) Establish standards of performance – include tolerance range
5) Measure actual performance – at correct times for accuracy.
6) Compare actual performance to standards for Benchmarking.
7) Take corrective action if actual results fall outside tolerance range.
8) Patient excellence surveys to really see how acquisition and changes are seen
in community and to the public.
9) Minimum amounts used only. No extra information needed.
10) Include long-term and short-term measures.
11) Should be used to pinpoint exceptions.
12) Measurements should be used to reward instead of punish (Hunger &
Wheelen, 2011) (Swayne, Duncan & Ginter, 2008).

15. Feedback Considerations for Success of
Acquisition
• Always keep the “End” in mind when
focusing on Success – if you do not
have somewhere to go, you will not
begin.
• Email contact.
• Weekly and monthly
Telecommunication contact – Skype.

16. Thank - You
The Acquisition Team wishes to thank the
Board of Trustees and the Financial
Funding Groups that we have invited
today. Questions will be answered at this
time.

17. References
• Altru Health System. (2015). About Altru Health System. Retrieved from http://www.altru.
• org/about-us/
• Altru Health System. (2015). Altru Financial Report . Retrieved from
• http://www.altru.org/app/files/public/14076/2014-Annual-Report_Web.pdf
• American Society for Quality. (2016). Plan-Do-Check-Act (PDCA) Cycle. Retrieved from
• http//asq.org/learn-about-quality/project-planning-tools/overview/pdca-cycle.html
• Conjecture Corporation. (2016). What is the Role of Environmental Analysis on Strategic
• Management. Retrieved from http://www.wisegeek.com/what-is-the-role-of-
• environmental-analysis-in-strategic-management.htm
• Get Full Value From Your Communication Plan. (2016). Retrieved from http://www.burrell
• esluce.com/resources/newsletter/2008/july_2008
• Hunger, J.D., & Wheelen, T.L., (2011). Essentials of Strategic Management (5th ed.). Upper
• Saddle River, NJ: Pearson Education.
• Mayo Clinic. (2016). Mayo Clinic Mission and Values. Retrieved from http://www.mayoclinic.
• org/about-Mayo-clinic/mission-values
• Mayo Clinic. (2016). Mayo Clinic: Governance and Management Structure. Retrieved from
• http://www.mayoclinic.org/documents/governance-management-structure-pdf/doc-
• 20079617
• Martindale-Hubbell. (2016). Business Basics of Mergers and Acquisitions Retrieved from
• http://business-law.lawyers.com/buying-selling-businesses/business-basics-of-mergers-
• and-acquisitions.html
• Swayne, L.E., Duncan, W.J., & Ginter, P.M. (2008). Strategic Management of Health Care
• Organizations (6th ed.). Hoboken, NJ: Wiley.