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Healthcare Mergers and Acquisitions

DDHA 8600 Week 6 feedback Hi XXX, Consolidation generally is a response to the competition and financial pressures in various markets. Primarily, the concern for a merger is financial. Organizations considering merging ae concerned whether the mergers will increase prices. Nevertheless, in the health care sector, there are additional complications as a result of mergers. For instance, healthcare services demands are affected by third parties. Physicians prescribe the treatments, whereas health insurance protects consumers from the full health care costs. Hospital merger may be described as the consolidation of two hospitals to form a single legal entity. The entity that surrenders its license becomes a satellite campus of the hospital that retains its license. Hospital mergers lead to the unification of the hospital boards, nursing staffs, and physicians of the different hospitals (Sharma, 2020). Reference Sharma, S. (2020). Merger & Acquisitions: Analysis of Selected Sectors. Journal Of Xidian University, 14(4). doi: 10.37896/jxu14.4/422 Hi XXX, The merger of healthcare affects patients' access to healthcare and care costs. There has been an observed trend of mergers in the recent period. This has sparked a debate concerning whether the mergers are for better or good. Professionals in the healthcare sector are worried about the less competitive nature, which is as a result of mergers as well as healthcare acquisitions (Singer, 2018). In a situation where few independent healthcare providers, the result is a limited choice for the consumers. A monopoly on healthcare has the potential of creating cost and access issues. Nevertheless, the proponents of healthcare merger argue that the structure changes are essential as they make patients access quality care Reference Singer, L. (2018). Considering the ACA's Impact on Hospital and Physician Consolidation. The Journal Of Law, Medicine & Ethics, 46(4), 913-917. doi: 10.1177/1073110518821989 Hi XXX, Hospital administrators who create merge with other hospitals believe that the consolidation will improve efficiency, lower costs of healthcare, make healthcare accessible to a large group, and upgrade the quality of care provided as well as patient satisfaction. Besides having immense benefits that come along with it, there are challenges experienced when merging the two cultures. There is a cultural effect of integrating two decision- making styles of both healthcare facilities. The different styles slow down, implementing the decisions. The varying leadership styles between the two hospitals can generate employee turnover (Dranove & Lindrooth, 2003). Reference Dranove, D., & Lindrooth, R. (2003). Hospital consolidation and costs: another look at the evidence. Journal Of Health Economics, 22(6), 983-997. doi: 10.1016/j.jhealeco.2003.05.001 Hi XXX, Improvement of health care requires making changes in processes of care and service delivery. Although process performance is measured to determine if these changes are having the desired beneficial effects, this analysis is complicated by the existence of natural variation--that is, repeated measurements naturally yield different values and, even if nothing was done, a subsequent measurement might seem to indicate a better or worse performance. Traditional statistical analysis methods account for natural variation but require aggregation of measurements over time, which can delay decision making