Introduction
Growth in the healthcare industry does not always come from starting new facilities from the ground up. Often, the fastest and most strategic way to expand is through mergers and acquisitions (M&A). Healthcare organisations looking to scale, improve services, or enter new markets frequently turn to M&A as a key business strategy.
Paul Contris has played a significant role in multiple healthcare acquisitions throughout his career, from expanding Samaritan Senior Services to co-founding SunQuest HealthCare Corporation and leading Welcov Healthcare to a multi-state presence. In this blog, you will learn why M&A is critical in healthcare, the challenges involved, and the key strategies for success.
Why Mergers and Acquisitions Matter in Healthcare
M&A plays a crucial role in the healthcare sector for several reasons:
- Expanding access to care – Acquiring existing facilities allows organisations to serve more patients without the time and cost of building from scratch.
- Achieving economies of scale – Larger healthcare systems can reduce costs by streamlining operations and increasing efficiency.
- Strengthening financial stability – Strategic acquisitions can improve revenue streams and profitability.
- Enhancing service offerings – Acquiring facilities with specialised care services (such as memory care or rehabilitation) helps organisations diversify their offerings.
For long-term care businesses like those led by Paul Contris, M&A has been a key tool for rapid and sustainable growth.
Paul Contris’ Experience in Healthcare M&A
Paul’s career demonstrates the power of M&A in healthcare expansion:
- The Hillhaven Corporation (1983–1985)
- As an Acquisitions Analyst, Paul played a role in the company’s rapid expansion, helping it grow into one of the largest long-term care providers in the U.S.
- Samaritan Senior Services (1985–1992)
- As Chief Financial Officer, Paul was instrumental in expanding the organisation from 3 to 22 facilities, proving that smart acquisitions could fuel sustainable growth.
- SunQuest HealthCare Corporation (1992–1997)
- As a co-founder, Paul oversaw the company’s growth from zero to over $225 million in annual revenue, with acquisitions playing a key role.
- Welcov Healthcare (1997–2019)
- Under Paul’s leadership, the company completed a major acquisition in 2012, adding 22 skilled nursing facilities, 11 assisted living communities, and 6 home health agencies, significantly increasing its regional footprint.
Each of these experiences reinforced the importance of strategic planning, financial due diligence, and operational integration in successful healthcare M&A.
Challenges of Mergers and Acquisitions in Healthcare
While M&A offers significant benefits, it also comes with challenges:
- Regulatory hurdles – The healthcare industry is highly regulated, and approvals can be time-consuming.
- Cultural integration – Merging two organisations requires aligning workplace cultures and management styles.
- Financial risks – Acquisitions require significant investment, and not all deals lead to profitability.
- Operational disruptions – Transitions can impact patient care, staffing, and day-to-day operations.
Paul’s experience highlights the importance of thorough due diligence and careful transition planning to mitigate these risks.
Strategies for Successful Healthcare M&A
- Conduct Thorough Financial and Operational Due Diligence
- Analyse financial statements, patient occupancy rates, reimbursement models, and cost structures before making an acquisition.
- Align with Organisational Goals
- Not every acquisition is a good fit. Ensure that new facilities align with long-term strategic objectives.
- Develop a Clear Integration Plan
- Address staffing, technology, and workflow integration early to minimise disruptions.
- Prioritise Patient Care
- The focus must always remain on maintaining and improving quality care for residents and patients.
- Leverage Strong Leadership and Communication
- Successful transitions depend on leadership that is transparent, adaptable, and engaged with both new and existing teams.
Conclusion
Mergers and acquisitions have been a driving force in the growth of long-term healthcare, helping companies like those led by Paul Contris expand services and improve patient care. However, successful M&A requires strategic planning, financial expertise, and strong leadership to navigate challenges and ensure smooth transitions.
For healthcare entrepreneurs and executives, the lesson is clear: growth through acquisition can be powerful, but only if done with careful planning and execution. By learning from industry leaders like Paul, organisations can make smart, sustainable expansion decisions that benefit both businesses and the communities they serve.