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Merge Paper

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Health Care Facilities Merger - Case Study
HCS/514
July 22, 2013
Brian Eigelbach

Health Care Facilities Merger - Case Study

The American Health Care System is faced with the challenge of providing superior health care at lower costs in a more efficient manner. A merger is the joining of two or more corporate entities to form one unified organization. Many hospitals and other health care facilities merge because of financial difficulties. Mergers increase the size and delivery options of the organization. Larger facilities also have greater negotiation power with insurance companies. The Affordable Care Act will further encourage merger and acquisition activity with its demand for quality-driven, patient-centered and cost-effective health care delivery. Mergers can be a way for health care facilities to meet the mandate requirements of collaboration and confirming to reimbursement eligibility requirements. When mergers occur they create a many sudden changes for both the floor staff and the administration staff. Two facilities with different cultures, performance records and, procedures combine to function as one cohesive unit. The merger of two facilities involves more than the merging of the structure and finances. Combining the nuts and bolts of two organizations is much simpler than merging the cultures. This rapid change can be met with resistance and the job of easing the resistance often falls upon the middle manager. However, because each organization has its own unique methods mergers can improve the new organization through shared knowledge, best practices and, shared strengths. Combining the best strategies of each organization ensures success. The leaders of both merging organizations have an obligation to recognize and address the challenges and perils that are characteristic of such an enormous task (Kaufman

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