The Health Services Industry's Opportunity For Mergers

1995 Words8 Pages
Introduction This paper will provide an analysis of the health services industry’s opportunity for mergers. First, this paper will suggest the key financial drivers that most likely will cause health care organizations to merge. Next, it will determine the evaluation criteria that a financial analyst would use to evaluate the financial performance of the organization post-merger, and identify the determinants that the analyst would use to decide whether or not the merger generated favorable financial results for the organization. Furthermore, this paper will determine the key factors that will drive the financial planning process for most organizations in the post-merger phase, and thoroughly examine the related impact to the organization’s process. Also, it will create an argument to assert that the financial planning process is of high value to a health care organization. Finally, this paper will predict the financial stability of the health care industry over the next five years. Key Financial Drivers - Merge There are several key financial drivers that most likely cause health care organizations to merge. According to Caramencio, health care organizations continue to team up with other facilities, insurers, and for-profit companies for a variety of reasons to include financial problems, and sometimes because of collaboration mandated under the Affordable Care Act and changing reimbursement models. On a positive note, these mergers are forcing assimilations and
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