Change and Culture Case Study Part 1

Topics: Health care, Mergers and acquisitions, Management Pages: 4 (1448 words) Published: April 9, 2012
Change and Culture Case Study 1
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 (Lielber & McConnell, 2008). Mergers occur for the following reasons; a desire to increase size to gain clout for negotiations with managed care providers, 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 overall value of promoting readily available comprehensive care (Lielber & McConnell, 2008). Mergers occur on a daily. Mergers are a type of horizontal integration. Horizontal integration combines two or more corporations together through mergers and acquisitions (Borkowski, 2005). Horizontal integration increases the merged organization market base (Cai & Obara, 2009). Competition plays a huge role in business. In each industry, organizations compete against one another to get a foothold in the market. Competition can be beneficial and detrimental to the success of organizations. Competition benefits organizations in that it keeps organizations current on the latest trends in technology and equipment. It can be detrimental in that it can cause organizations to take shortcuts in procedures that can be harmful to patients and consumers. Competition can cause management to only focus on being number one and maintaining that spot at whatever cost. Customers are left holding the bag when and suffer when organizations focus solely on competition instead of focusing meeting the needs of the customer. Some organizations and industries strive on competition. Their goal is to be the best in their field and industry. In the health care industry, competition can be beneficial if organizations maintain their focus on providing quality patient care. This paper will focus on the effects of merging a healthcare organization with a competitor....
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