Decisions on Health Care Organization Alliances and Regulations – Discussion

Decisions on Health Care Organization Alliances and Regulations

In the past decade, there has been an increase in mergers and acquisitions of healthcare facilities. Various factors are vital in ensuring that a merger or acquisition of a healthcare facility is successful. Mutual understanding of the value of the merger or acquisition, conducting due diligence on other organizations, acting rationally instead of desperately, and acknowledging the impact of culture on the merger or acquisition are some of the major factors that vital in ensuring the success of a merger or acquisition. An organization should ensure that it is ready for the merger or acquisition. An organization should ensure that it times the merger or acquisition perfectly. Hospitals may court for as long as ten years to ensure that the merger or acquisition is successful. Hospitals should ensure that they do not consolidate quickly. They should all the time they need to ensure that they are compatible. This would help in saving costs of the consolidation. An organization should ensure that it acts rationally instead of desperately. A healthcare organization should look for partners when it has a strong market position. Organizational culture has a significant impact on its operations. Therefore, a healthcare facility should ensure that it considers its impact on the consolidation. A merger may be vital in improving the competitiveness of a healthcare facility. It may enable the healthcare facility acquire new equipment, which would help in increasing the number of patients it serves. Healthcare alliances also enable healthcare facility to have resources that would enable it to fulfill various regulations (Yanci, 2013).

The Federal Trade Commission regulates consolidations of healthcare facilities. Government regulations help in ensuring that consolidations do not lead to anticompetitive practices. Government regulation also ensures that the mergers are successful. It ensures that hospitals do not engage in practices that have to the collapse of other hospitals in the past. Failure to have a government regulatory system would make hospitals consolidations anticompetitive. This would lead to the creation of a monopoly, which would increase healthcare and healthcare insurance costs. Failure to have a government regulations system would also increase the rate of failure of hospitals after mergers or acquisitions. This would reduce the accessibility of care (Yanci, 2013).

 

Reference

Yanci, J. (2013). What Hospital Executives Should Be Considering in Hospital Mergers and Acquisition. Hudson, OH: Dixon Hughes Goodman.

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