Question

How should management deal with the physical structures at the time of the consolidation

Answer 1

The physical structures during consolidation should be maintained in a way to improve the efficiency of the combined entity. This may include the following:

1. Returning the hospital to the county,
2. Creating a payment plan for the new facility in a combined way.

The consolidation should be based on focusing on success of the consolidated facility and the lessons learned from the failures of individual facilities. The physical structure should be merged and strategic focus should be on building reputation through use of specialty services for customers.