Health Care Organizations: Post-Merger Analysis

1312 WordsFeb 1, 20185 Pages
Post-Merger Analysis The present day truly does present a perspective of a world which is ruled by a tremendous amount of change and adjustment. This sort of rapid evolution is a major part of the health care industry. Hospitals are under a great deal of stress, with many people saying that healthcare today in America is an unsustainable proposition. The gaps and pervasive problems in American healthcare need to be fixed decisively rather than skirted around. Mergers are becoming more and more a new way of helping hospitals and other healthcare facilities achieve a new form of stability and a hope of gaining a greater level of efficiency. 1. Suggest the key financial drivers that most likely will cause health care organizations to merge. Provide support for your rationale. One of the key financial drivers which help to cause health care organizations the desire to merge or the action of actually merging is this need for financial stability as a result of a struggle to survive in the modern healthcare climate. Thus the greatest factor behind hospital mergers is instability. "One belief is that by engaging in mergers hospitals can take advantage of synergistic impacts; by becoming larger forces in the market, hospitals can take advantage of quantity discounts on larger purchases, more effectively use advertising, and further lower costs through reducing duplication of facilities. Also, they have more leverage with managed care organizations" (Harris et al., 2000).
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