Wonder

Healthcare Mergers Rebranding Costs

Delivered June 24, 2020. Contributor: ChristineD

Goals

Determine the average dollar figure and the method of calculation of the cost associated with rebranding investments in the healthcare delivery offerings in primary care, specialty, are or other care delivery offerings.

Early Findings

Healthcare Mergers Rebranding CostsRebranding Costs Calculation
The best way to assess the degree of the mandated change after a merger is to consider the size of the synergy target.  
The more changes are needed, the bigger the amount of the budget.

Healthcare Merger ExampleWhen HealthSouth and Encompass Home Health and Hospice merged, the company decided to adopt a single name.
However, their target market were still not aware that these two entities were already under one company.
Given this, the company decided to do a rebranding initiative and launch the new Encompass Health Corporation as its new name.
 
The estimated cost of this rebranding is between $25 million to $30 million.
 
It will involve the transformation of branded assets, formulating a strategy to involve stakeholders, and deploying a focused marketing plan to raise more awareness of the Encompass Health brand.

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