Wait a second!
More handpicked essays just for you.
More handpicked essays just for you.
Hospital merger case study
Hospital merger case study
The merger of two competing hospitals
Don’t take our word for it - see why 10 million students trust us with their essay needs.
Recommended: Hospital merger case study
The key factors that has brought changes in Bournemouth hospital and Poole hospital to turn into a merged trust are –
• Less competition:
Harmful rivalries bring about businesses hateful to each other. Excessive stress creating unproductive workers is caused by competition too. By the merging of Bournemouth and Poole, there will be less competitions against these two health and social care services.
• Reduced Costs and increased financial saving:
Merged businesses can decrease many of their expenses. Cropped marketing budget, lower material cost, redundant employee layoffs, merging the patient’s database lessens the overall business costs. Often, merged business adopts new and innovative technology which may seem costly, but technology actually
…show more content…
There are several challenges that the key factors of the merger between Bournemouth hospital and Poole hospital bring:
• Differences:
One of the basic challenges in merging is the differences between Bournemouth and Poole. Differences in management style, personality and opinions of Bournemouth and Poole may cause the merger to break down.
• Legal issues:
According to the Mergers and Acquisition Law, there are several issues like fair trade, due diligence, merger and acquisition deals and cross-border regulations, all of which must be followed for being and continuing as merged business for Bournemouth and Poole.
• Culture:
For a good combination of Bournemouth and Poole, the difference in their individual business culture can turn into a problem. This requires proper planning and creativity.
• Integration:
Integration after merger is often tricky. As a merger, Bournemouth and Poole need to learn to combine their individual efforts and resources by bringing every essential element of their organizations together. This process requires a lot of planning and
…show more content…
Because of merging, price often gets higher, quality and customer’s options to varieties get lower because of less competition. These facts will decrease the interest of consumers of Bournemouth and Poole to not have their services
A strategy needs to be developed for measuring the recent changes in health and social care services. The promised improvements of quality, choice or innovation of services for patients arising from the proposed merger can be evaluated by these following things:
Background information of Bournemouth and Poole which covers –
Parties of the merger and their status
Merger structure
Transfer of services, assets and liabilities
Reasons behind the merger
Proper explanation of the current situation, involving the type and extent of the current problems. And the merger will bring progress over the current situation.
Evidence that this merger signifies a development of the current situation such as, academic papers, surveys from patients, clinical studies
The board of trustees or directors, the community (if they have a say on the matter), and the employee union might influence the decision. If the financial difficulty is really severe, HSO might consider merging with another hospital in the area, if the other hospital is also struggling financially with their pediatrics unit or if the other hospital is ‘larger’. In both cases, the result will be more efficiency. This will be advantageous to my hospital and my hospital’s patients, for the bigger hospital might be better-equipped technologically. The merge itself does not need to be absolute; it does not require a complete consolidation of the other units/services. For example, it might be planned that the pediatrics services will be provided
Consolidation within health plans has included several large scale mergers such as Anthem and Cigna as well as Aetna and Humana, primarily driven by a need for growth, with a particular focus on growth within the Medicare Advantage market. If successful, the deals would collapse the health-insurance industry’s top five players into
In the year of 2005, the companies eventually found a way to make it easier for the companies to combine without having any major issues or problems. Unfortunately, around the year of 20010 the merging com...
This article is concluding that the choice of leadership succession is not important in how the merged company fares thereafter, even in such an extreme case as a mergers of equals. Nonetheless, the high failure rate of mergers remains, and so research should shift attention to other salient factors such as cultural and operational integration (Cheng, 2012). This article is supporting iGate Patni because, instead focusing about the choice of leadership succession, IGate focused on the factors such as cultural and operational integration which is the reason for their successes in merging with Patni.
A merger is a partial or total combination of two separate business firms and forming of a new one. There are predominantly two kinds of mergers: partial and complete. Partial merger usually involves the combination of joint ventures and inter-corporate stock purchases. Complete mergers are results in blending of identities and the creation of a single succeeding firm. (Hicks, 2012, p 491). Mergers in the healthcare sector, particularly horizontal hospital mergers wherein two or more hospitals merge into a single corporation, are increasing both in frequency and importance. (Gaughan, 2002). This paper is an attempt to study the impact of the merger of two competing healthcare organization and will also attempt to propose appropriate clinical and managerial interventions.
The purpose of this paper is to attempt to recompile information about the merger of two corporations; one of many taking places i...
...dditionally, the merger can take place in smaller phases. For instance the first phase may include change of the physical look of the branches and the signage - – so as to convey a consistent view and experience for its customers. This phase may also include effective communication to the employees to educate them about the merger, ensure them of their positions and encourage them to participate in the merger. Second, the firm can totally combine the bank’s technology and the information systems which will allow the merged firm to operate as a single entity and to become fully operational. The management should implement the merger with care and prudence, aiming for minimal disruption for the customers and should communicate extensively to ensure all its stakeholders are kept fully informed as they make changes.
That brings a great challenge to succeed, and lets the leadership work in new and innovative ways to make such a merger successful. McClelland’s theory states, in regards to the need for achievement, that people strive “To excel one’s self.to rival and surpass others. to increase self-regard by the successful exercise of talent” (Kreitner & Kinicki, 2010, p. 215). By this definition, the merger would motivate leadership to excel in the face of a challenge, and to increase their professional self-regard in their success in doing so. On an individual level, you are asking the performers and employees to recognize both economic and social climates, and to come together in action to save both their careers, as well as their passion for life....
I agree with you, operating in a highly regulated industry, the healthcare organizations need to consider several factors when it comes to forming an alliance or entering into a merger deal with other healthcare provider. As you mentioned, healthcare practice (patient care) is the one of the most important factor to consider because the ultimate goal of any healthcare organization is the quality patient care, so when organizations decide to merge the must consider how their new operation will contribute to patient care. You have provided very good reasons for the necessity of healthcare mergers. Merger can help organization cut the costs and share technology which can lead to improved patient
This shows how fast the merge was completed and the lack of planning. There was also no backup plan once these issues arose and once they arose there was no time to
In order to be a successful business of any kind, those that run it must know where it is going, in order to get there; strategic planning is the way to make that happen. Opening doors in 1970, without a plan for the future only makes a plan more necessary today. Health care is an ever changing, ever growing “business” that if one does not have a plan; one will drown in the future. To be successful one needs to know the purpose and rules of the “game”, the strengths and weaknesses of the “crew”, and be well-conditioned and prepared for what is to come (Bryson, 1988). If the hospital is able to plan, unite, and conquer; the future will be successful. Strategic thought and action are important to the viability and the effectiveness of any agency. Without starting a strategic ...
When two companies decide to combine forces and become one bigger, richer mega company, it is called merging. This process forms a new company, combining the money and ideas of what used to be two different entities into one. This, however, is not the only thing that results from merging two different companies, and since we will be discussing the merging of two companies in the pharmaceutical industry, the impact will be incredible. Of course, the merging of two companies will not only have positive impacts but it will have many negative side effects as well. Furthermore, depending on the size of the merging companies and the goals of the people leading these companies there will always be contradictions according to the long-term goals or short-term goals depending on what both parties’ interests are. Our company, Verduga Inc. is contemplating to merge with Coronado-Salinas Inc., so before we rush into such a merger we must contemplate the positive and negative aspects of such a move. When it comes to mergers there are always many possible positive and negative impacts due to the effects of merging; these effects more widely impact the fields on research and development, on employment and management, stocks and shareholders, monopolization, and ingenuity.
Now my curiosity was increased by a sense of uncertainty. Would I have a job after the merger? Should I start preparing for a transition career? What was my exit plan should the worst happen? Could this coaching gig be something that might make sense for me?
At a macro level as a result of the acquisition the combined size of Turner & Townsend Thinc was considered to be of strategic benefit to both firms. While there have been no official mass redundancies, role duplication has resulted in early retirement and resignations. However, the common problem faced after the acquisition is power struggles, excessive overhead, bureaucracy, uncontrolled layering, and decision strangulation.
- Organisation and Management of Health Care, April 2002, Version 2.0 , Main Contributor: Katie Enock, Public Health Specialist, Harrow Primary Care Trust www.healthknowledge.org.uk