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As nonprofit healthcare systems across the U.S. increasingly consolidate through mergers and acquisitions (M&A), HR leaders—especially those managing employee rewards and benefits—play a pivotal role in ensuring benefit continuity, equity, and retention. Without a carefully executed benefits integration strategy, organizations risk confusion, decreased morale, and the departure of key talent—just when healthcare workforce stability is most critical.
Why Healthcare M&A Makes HR’s Role More Critical Than Ever
According to Kaufman Hall’s 2024 Healthcare M&A report, consolidation among nonprofit systems is accelerating. These deals are often driven by goals like:
- Improving financial sustainability
- Expanding geographic reach
- Addressing clinical workforce shortages
Yet amid all the strategic and operational planning, harmonizing employee benefits is frequently an afterthought—until disruptions spark dissatisfaction or turnover.
The Hidden Risk: Disruption of High-Impact Employee Benefits
When healthcare systems merge, differences in legacy benefit structures can create confusion and unintended inequities. Commonly impacted benefits include:
- Student Loan Repayment Assistance (SLRA)
- Public Service Loan Forgiveness (PSLF) program eligibility
- Tuition reimbursement and continuing education
- Retirement plans and pension contributions
- Healthcare and dependent care coverage
If these benefits are modified or not communicated clearly, it can lead to dissatisfaction—especially among frontline workers who depend on programs like PSLF to manage large student debt burdens.
Best Practices for HR Leaders During M&A Transitions
To protect employee trust and maximize retention, HR leaders should take a proactive, structured approach:
1. Audit and Map Existing Benefit Structures
Conduct a side-by-side comparison of benefit programs from all merging entities. Identify:
- Redundant offerings
- Gaps in student loan assistance or retirement matching
- PSLF eligibility across all job roles
- Benefit disparities that may impact diverse or underrepresented populations
2. Prioritize High-Value, High-Utilization Benefits
Data shows education benefits are retention drivers. A PeopleJoy survey found employees with access to student loan support were 58% more likely to stay with their employer for two years or more.
3. Communicate Early, Transparently, and Repeatedly
Don’t wait for deal closure to begin benefit communications. Share what employees can expect to change, stay the same, or improve. Regular updates help build confidence and reduce anxiety.
4. Leverage Benefit Partners and Technology
Working with specialized benefit providers like PeopleJoy can reduce administrative burden and scale support. PeopleJoy offers:
- PSLF enrollment and processing
- End-to-end education benefit management
- Personalized coaching
These solutions help unify support across newly merged teams, even during transition periods.
5. Redesign Benefits Through an Equity Lens
M&A integration offers a powerful opportunity to improve diversity, equity, and inclusion in benefit design. Prioritize benefits that support lower-income or heavily indebted employees—like first-generation professionals or underrepresented workers with large student loan burdens.
Let’s Talk: Strengthen Retention During M&A with PeopleJoy
If your healthcare organization is undergoing or preparing for a merger or acquisition, PeopleJoy can help you protect workforce stability. Let’s work together to ensure your employees retain access to critical education and financial wellness benefits.
📩 Schedule a discovery call today.
Disclaimer: This blog post is for informational purposes only and does not constitute legal, tax, or financial advice. Please consult with a qualified advisor or legal counsel before implementing any benefit changes or strategies. PeopleJoy is not affiliated with the U.S. Department of Education or any government agency.
Sources
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