Change and Culture Case Study
Change and Culture Case Study I
Darlinda Smith
HCS/514
October 15, 2012
Steve Kovak, MHA
Change and Culture Case Study I
During the past decade the hospital industry has made profound organizational changes, including the extensive consolidation of hospital system through merger and the formation hospital systems (Evans & Gertler, 2012). The rules of health care are changing. Growth is not about just getting bigger. It is about developing all of the components needed for coordinated care and reduced costs. Health system reform has various incentives, such as those related to reducing readmission rates, and establishing an accountable care organization, but qualifying for them requires closer links to other parts of the medical care chain (Breakthroughs -Hospital merger and acquisition strategies, 2012). There is a definite value for growth opportunity through hospital mergers.
Mergers occur for several reasons, a desire to increase size, to gain leverage for negotiations with managed care companies, the desire to penetrate new markets to attract additional customers, the need for improved efficiencies resulting from centralized administrative practices, and the desire to express value of promoting readily available comprehensive care. A merger is the combining of two or more corporate entities to create one new organization with one licensure, and one provider number for reimbursement purposes (Liebler & McConnely, 2008). Mergers and acquisitions in health care are increasing in numbers because of the increasing financial, socio-political and managerial challenges of decreasing reimbursement and increasing payor demand for quality-driven, patient-centered and cost-effective services to the community. Restructuring an organization through mergers, and affiliations are characteristic organizational efforts to achieve economies of scale, adapt, and survive. Two such specific reasons include: the need for improved efficiencies through
Darlinda Smith
HCS/514
October 15, 2012
Steve Kovak, MHA
Change and Culture Case Study I
During the past decade the hospital industry has made profound organizational changes, including the extensive consolidation of hospital system through merger and the formation hospital systems (Evans & Gertler, 2012). The rules of health care are changing. Growth is not about just getting bigger. It is about developing all of the components needed for coordinated care and reduced costs. Health system reform has various incentives, such as those related to reducing readmission rates, and establishing an accountable care organization, but qualifying for them requires closer links to other parts of the medical care chain (Breakthroughs -Hospital merger and acquisition strategies, 2012). There is a definite value for growth opportunity through hospital mergers.
Mergers occur for several reasons, a desire to increase size, to gain leverage for negotiations with managed care companies, the desire to penetrate new markets to attract additional customers, the need for improved efficiencies resulting from centralized administrative practices, and the desire to express value of promoting readily available comprehensive care. A merger is the combining of two or more corporate entities to create one new organization with one licensure, and one provider number for reimbursement purposes (Liebler & McConnely, 2008). Mergers and acquisitions in health care are increasing in numbers because of the increasing financial, socio-political and managerial challenges of decreasing reimbursement and increasing payor demand for quality-driven, patient-centered and cost-effective services to the community. Restructuring an organization through mergers, and affiliations are characteristic organizational efforts to achieve economies of scale, adapt, and survive. Two such specific reasons include: the need for improved efficiencies through
References: Breakthroughs -Hospital merger and acquisition strategies. (2012). Retrieved from http://www.healthleadersmedia.com Evans, A., & Gertler, P. (2012). Trends In Hospital Consolidation: The formation of local systems. Retrieved from http://content.healthaffairs.org Kendall, B. (2012). Regulators Seek to Cool Hospital-Deal fever Retrieved from http://wsj.com Liebler, J., & McConnely, C. (2008). Management Principles for Health Professionals (5th ed.). Sudbury, MA: Jones and BArtlett. Ofverstorm, A. (n.d.). A Middle Manager 's Dilemma in Mergers. Retrieved from http://arch.hhs.se Valley Care of Ohio. (n.d.). Valley Care Health System of Ohio. Retrieved from http://www.valleycareofohio.net