DDHA 8600 Diss Week 6
Post an explanation of how healthcare administration leaders might address physician concerns when engaged in a merger or acquisition for health services organizations.
Mergers and Acquisitions in Health Service Organizations
Although there are many risks and challenges associated with a healthcare organization
merge or acquisition, the benefits are plenty. Among those benefits are increased access to
resources, such as patient referral bases, and an expansion of organization stability in the realms
of economics and group personnel (Schmitt, 2015). No matter what benefits and challenges
sneak up during the long process of a merge or acquisition, it is critical to have sound
management and physician leadership to guide both entities to their common goal, reassuring
and educating all personnel along the way.
Understanding Physicians Concerns
One of the main concerns for physicians involved in a merger or acquisition is the fear of
losing autonomy and decision-making power within their practice. If they are accustomed to
serving an administrative role within their group, then they will expect to be involved in the
merging process. If physicians on both sides of the merge are not included in the merging
process, then there is potential for passive resistance and avoidance of conflicts of interest
between the physician and administrative teams (Menaker & Bahn, 2008). This will lead to a
lack of full disclosure and create distrust between the groups, ultimately delaying the success of
the merge.
In order to avoid this challenge and reassure physicians and administrators that they are
not losing control, the Health Administrators must establish to them that their views and talents
are critical to the organization. This can be carried out through productive evaluation sessions,
where facilitators ensure that physician's time is used efficiently, and their opinions are heard. It
is also significant that Health Administrators stress the benefits and reasons for the merge and
that everybody involved must concede to change in order to obtain those benefits (Gesme &
Wiseman, 2010). Education, adequate coaching, and transparency are all necessary to advance
the merger or acquisition. It is helpful for medical organizations to elect a physician leader to
represent physician's interests and to build trust between administration and employees
(Schraeder & Self, 2003).
Formulating a Strategy
Implement an integration strategy -- ideally one that was developed from the outset of
merger discussions -- that leads to success over the long-term. A successful integration plan will
help to merge the cultures and future goals and visions of the entities.
Clarify rationale for affiliation. Identifying what the organizations will accomplish
together that they cannot achieve individually, with expected organizational and community
benefits, should be one of the first steps when considering an acquisition or merger. Improved
services and clinical capabilities; higher quality care and a better patient care experience; and
financial benefits, plus access to capital and economies of scale, are among the most common
benefits wanted through affiliation (Ren & Han, 2017).
Over-communicate. The rationale for affiliation should form the basis for initial
communication with vita