Keeping your staff informed on M&As.

With mergers and acquisitions (M&As) so commonplace in health care these days, you would think that post-acute care organizations would have figured out by now how to keep staff informed and free from panic. This, unfortunately, is not the case.

Poor communication about M&As is creating unnecessarily high levels of fear and insecurity within organizations, not to mention the communities served by them. Unfortunately, in many M&A situations, corporate communications are short-sighted, focusing on information for investors and shareholders but failing with other key audiences, including customers, referral sources and employees.

The primary reason companies fail to communicate adequately in M&A situations is simply that they don't think they can do so without creating more potholes in already uncertain terrain. They believe that they will endanger the final outcome of the deal or be proven wrong. And, to be sure, there are many unresolved issues, terms, conditions and variables in a business agreement that make it difficult to answer typical questions from employees, patients, families and others in timely fashion. With so much at stake, many company executives opt to say as little as possible and dutifully suffer through whatever short-term damage may result in terms of employee, patient and community relationships.

Even so, post-acute corporations that try to maintain open lines of communication with these key audiences may find themselves rewarded in terms of good will, understanding and trust. And when your business is caring for people, understanding and trust count for a lot. The basic idea is to be as honest as possible without jeopardizing the deal or the necessary confidentiality.

How does one bring off this balancing act? For some guidance, we contacted an expert. John Quinn is a principal in the public relations firm of Haber & Quinn, located in Miami, FL. With more than 15 years of experience in healthcare public relations, including post-acute care, John has seen it all, and he generously shared his insights.

Hyatt: John, what can an administrator do when there are no clear answers to operations questions during an M&A?

Quinn: If you don't know specifics when it comes to the potential for staff reductions, changes in management or key operations procedures resulting from a merger or acquisition, acknowledge that up front. But don't stop there. Also acknowledge your understanding of the sincere concern and frustration of those seeking answers to these questions. Connect with their emotions rather than ignoring them, and help them understand at a personal level the many variables that make it impossible for you to answer their questions at this time. Then move on to things you can discuss.

Hyatt: It is well known among public relations professionals that it is important to be proactive when a change in an organization is about to occur. This formula is known as "fast-frequent-feedback." Can you give some examples of how this works?

Quinn: The formula of "fast-frequent-feedback" means basically that a good M&A communications program must function like a news organization. Fast - get there first with the news before your audiences hear it, right or wrong, from other sources. Frequent - get there often enough so that your audience comes to rely on you as the primary information source. Feedback - include feedback mechanisms so that you know you are on track in addressing the right questions and concerns as best you can.

For example, Fast: Think e-mail, broadcast faxes and 800 telephone lines with recorded messages. Especially in the early stages of announcing M&As, it is vital that your key audiences hear the news from you first, presented from your point of view. Traditional print communications are typically slower for this, although they do play a very important role in the overall communications program.

Frequent: Communicate often - preferably daily in the first days after announcing the merger or acquisition - and in a variety of ways to make sure you are reaching everyone important to your company. For example, while e-mail is a fast, cheap communications tool, it is typically not accessible to everyone in a post-acute setting. However, everyone will have access to a telephone. Setting up an 800 line with recorded messages updated on a regular basis can help you reach everyone in your company, day or night.

Feedback: While you should be able to anticipate the key topics of interest regarding the merger or acquisition (such as job security, benefits, etc.), there will always be unanticipated issues of concern. Include mechanisms for instant feedback to your communications office so you can uncover these issues and address them right away. For example, it is easy to set up a system for leaving response messages after hearing the recorded messages on the 800 line discussed above. Later, perhaps a couple of months after the M&A process is complete, it may be wise to do a "perception check" among employees, patients, referral sources and community influentials to evaluate the success of your communications plan. A simple survey can uncover whether you were effective in communicating your messages or if you have to do some "repair work" on your image.

Hyatt: Can you supply some basic tips for corporate or facility middle managers?

Quinn: Ideally, the commitment to communicate effectively in an M&A situation should come from the top - from the chief executive officer. However, even without that corporate commitment and support, there are some basic techniques that administrators and directors of nursing can use to ease fears and anxieties about a merger or acquisition:

1) Respond quickly to staff's questions and concerns: Even when you "don't know" or "can't say," you can acknowledge questions and concerns in a way that will alleviate fears and anxieties. For example, if rumors are flying about a merger or acquisition and you cannot get any official information from top management, don't wait...

2) Be proactive, despite the lack of information.

3) Hold staff meetings, acknowledge that you are aware of the rumors, and be up front in explaining what you do and do not know.

4) Use this time to give your staff guidance on how to respond to others in similar fashion regarding the rumors, but...

5) Communicate on a regular basis about the merger or acquisition, even when there isn't much to report. The staff should come to rely on the facility administrators and directors of nursing as the source for any new information.

M&As are everywhere in today's healthcare industry - they are a part of the business. Remember that the number one reason companies merge, acquire or divest is to become stronger and more successful. Being a strong and successful post-acute company can be good for everybody - -employees, patients and the communities in which the companies operate. It's up to corporate managers, administrators, directors of nursing and the rest of the facility management team to communicate this perspective as a way of minimizing fears, thereby creating a positive climate that encourages the achievement of the organization's mission.

For further information, contact John Quinn at Haber & Quinn, phone [phone]. If you have a suggestion for this column or would like to participate in it, write to Laura Hyatt at 2958 Kelton Avenue, Los Angeles, CA 90064. Please include your name, name of organization, address and telephone number.

Laura Hyatt is president of Hyatt & Associates, Los Angeles, CA.