Merger of Health Care Companies

I wish to look into the Health Care and in this case I need to look into FTC Universal health facilities. The merger is intended to take place between it and another health care providing institution known as Psychiatric Solutions. The acquisition of the organization was estimated to cost close to $ 3.1 billion and it would have been the best thing to do in running of the organization (F.T.C, 2011). Merging the two organizations would be very effective in reducing the competition between other organizations that provide psychiatric services to patients especially in Delaware, Las Vegas, Nevada and Puerto Rico.

Before the merge was executed there was premerger notification given to the involved partners of the merger. To execute the merger, there needs be executive signing of forms by all involved parties. The forms include FTC and DOJ which are also referred to as ‘filling of HSR form’ also known as ‘Notification and Report Form’ used in mergers and acquisitions (F.T.C, 2011). To attain the merger the government had to intervene and bring the intended companies together.

Before granting merger forms The Bureau of Competition was committed to ensuring that involved companies do not create a monopoly in the market and hence reduce competition that may also affect the integrity of the services provided. In most cases the bureau controlling the start and the running of mergers uses the Hart-Scott-Rodino amendments to the Clayton Act (Clark, 2011). Before becoming a part of the merger it is important that FTC does an analysis of the merger to evaluate the effects the merger may have on the businesses. In addition, it is important that FTC gets to have a clear picture of the situation and how it is expected to affect the relations...

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...lenge in the operation of the organizations since there are more clients to be dealt with than was the case before merger. The FTC-UHS merger is also a challenge since there is only one management of all the clinics run in all the countries where other individual organizations were situated; there is need to improve on the management schemes.

References

Berry, A. W. (2010, May 31). Advantages and disadvantages of acquisitions and mergers. Retrieved from http://www.helium.com/items/1561489-mergers-and-acquisitions

Clark, D. S. (2011, Jun 24). About the office of the secretary. Retrieved from http://www.ftc.gov/os/about.shtm

F.T.C. (2011, Aug 12). In the matter of Alan B. Miller, a natural person; Universal Health Services, Inc., a corporation; and Psychiatric Solutions, Inc., a corporation. Retrieved from http://www.ftc.gov/os/caselist/1010142/index.shtm