Question

what are the basic elements of mergers and acquisitions in healthcare? Do mergers and acquisitions affect the quality of care provided?

Answer 1

Basic elements of Mergers and acquisitions in health care:

Health care sector is dealing with the prevention, treatment and management of illness or the preservation of physical and psychological wellbeing through the services offered by the Medical, nursing and other allied health professions. Mergers and acquisitions are common in Health care . The legal union of two or more corporations or organisations into a single entity , typically assets and liabilities being assumed by the buying parties is called a Merge. Acquisition is the act of acquiring or procuring something. Basic elements of Mergers and acquisitions in Health care are :

* Communication: It is a basic element of Mergers and acquisitions in Health care. Forming a communication team solely for the purpose of Merges and acquisition is necessary to solve the issues related to merging and making the plans of communication between the organisations. Be clear and straight in the communication process. Honesty in communication is the basic necessity to build trust between the entities.  

* An integration strategy: Determining an integration strategy for the Merging and acquisitions is ver important. Every matters related to M and A should make clear in the strategy, such as the position of the Merging organisations, its value, area of strength . A well executed and strong integration team , that is dedicated for executing the integration for the purpose of smooth transition during M and A is necessary. Separate managers should be there for running the normal health care management and running or executing merging operations.

* Well planning: It is another element for M & A. There is a need of clear plan regarding many critical details about the type of M& A that is going to be implemented.

* New identity or a Shared vision: An Organisation or company have to be rethink about their new identity or reviewed vision oncevit get Merged with another Health care organization. There will be practical difficulties to maintain both identity. Both entity have to be agreed upon the new identity and vision, otherwise the process of Merging will be futile.

Quality of Care:

M&A influences Quality of Care as there will be improved supply in resources, staff etc. But many Health care studies show that there is no significant improvement in Quality of Care in terms or readmissions and mortality . Main advantages of M&A is generating profits for entities and increase in the bank investments.