Client story: Albury Wodonga Health

When the Albury Base Hospital and Wodonga Regional Health Service merged in 2009 to form Albury Wodonga Health, it created Australia’s only cross border public health provider under a joint state agreement.  

However, the merger was easier said than done. With each service sitting on different state lines, early questions included:  

• Which state would fund which services?
• Who would own which assets?
• How would differing certifications/registrations be recognised across states?
• What pay structures would apply in each jurisdiction?  

While the community and most stakeholders were keen for the merger, many did not understand the complex issues at play. The boards and CEOs of both organisations had spectators from as far afield as Canada, UK and USA, who faced similar issues, while they worked with high-level lawyers and Crown solicitors to determine how the arrangement would work. They also engaged heavily with unions, media, and interest groups to minimise disruption and maintain confidence among employees and the community.  

The result was a successful cross-border agreement with shared funding and asset management provisions, which has gone on to serve a catchment of around 300,000 people across northeast Victoria and southern NSW with a comprehensive range of health services.

“The key lessons from this merger were engagement and flexibility. People fear the unknown, so you must take them on the journey or risk operational and reputational impacts. Especially in NFPs, emotion can run high during a merger. Try to keep a level head and focus on the best interests of the organisation. If it’s clear something isn’t working, don’t be afraid to pivot or take the time you need instead of rushing. A considered, well-planned merger has the best chance of success.”

This client story was taken from RSM’s Mergers and Acquisitions in the not-for-profit sector report. Download the full report here.  Please connect in with Andrew Bowcher for a confidential discussion about your organisation’s strategic drivers.