The Merger Of Two Competing Hospitals: A Case Study

3371 words - 13 pages

A merger is a partial or total combination of two separate business firms and forming of a new one. There are predominantly two kinds of mergers: partial and complete. Partial merger usually involves the combination of joint ventures and inter-corporate stock purchases. Complete mergers are results in blending of identities and the creation of a single succeeding firm. (Hicks, 2012, p 491). Mergers in the healthcare sector, particularly horizontal hospital mergers wherein two or more hospitals merge into a single corporation, are increasing both in frequency and importance. (Gaughan, 2002). This paper is an attempt to study the impact of the merger of two competing healthcare organization and will also attempt to propose appropriate clinical and managerial interventions.
Background
Based on the case study provided: Hospital A, Porter Regional Medical Centre (Hosp. A) & Hospital B Banner Regional Medical Centre and Turner Geriatric Centre (Hosp. B) merged to form a consolidated entity named “Portsmith Regional Medical Centre” (PRMC). Both Hospital A and B were fully accredited hospital, with “state-of- art diagnostic technology” which included MRI and CAT scanners, 24-hour physician staffed emergency centers. Both Hospital A and Hospital B are located in a small community of 60,000 people in southeastern part of Idaho.
Hospital A before the merger was a for-profit hospital, relatively new facility, in east side of town. It consisted of 110 hospital beds, 8 of which were reserved for transitional care. Services provided were: general surgery and same day surgery, full-service rehabilitation department and radiology department. Other services included kidney dialysis center, on-site retail pharmacy, blood bank, women’s center etc. Operating budget for 2001 was $34 million, but it experienced a loss of 1 million and projected a $500 thousand loss for 2002. It decided to liquidate after 3 years of red ink.
Hospital B was a not-for-profit organization, located in west side of town. It consists of 154 inpatient beds and a geriatric health center with 100-106 beds, 13 transitional beds and 7 rehabilitation beds. Total staff of 914 employees. It is an old facility and has earmarked $20 million for renovation to existing emergency room and ICU. Appendix 1, Table 1 provides an overview of the two facilities before merger and an overview of PRMC after Merger.

Rational for merger
Merger of Hospital A and B and its consolidation into PRMC was essential as Hospital A was crippled with losses for 3 previous years and was also forecasting losses in the coming year. Hospital B was struggling with an aging facility. Furthermore, given that both the hospitals were in the same community and therefore essentially serving the same community, they were competing both: for the same patients, as well as, the clinical staff. The merger, allowed the new PRMC to reduce the healthcare costs, address the shortage of healthcare personnel and improve the delivery...

Find Another Essay On The Merger of Two Competing Hospitals: A Case Study

Merger of the Institute of Electrical Engineers, Institute of Mechanical Engineers and the Institute of Incorporated Engineers Marketing Plan Case Study.

7885 words - 32 pages interest.The proposed merged institution would be the largest and most powerful professional engineering institution outside of America, with a membership of approximately 250,000 engineers at the point of merger. This number of members compares to the fact that in 2001 there were 1.67 million engineers employed in the UK, this indicates a large pool of potential members of the merged institution. The size and power of the merged institution would

Take Two of These and Call a Coroner in the Morning: Tylenol PR's Effective Communication Case Study Analysis

1712 words - 7 pages Take Two of these & Call a Coroner in the MorningIn 1982, American consumers were gripped with terror and fear. 12-year-old Mary Kellerman of Elk Grove Village just wanted to cure a morning headache, not knowing that the drug she sought to relieve her would send her to her death. It was the same case for the 27-year-old postal worker Adam Janus of Arlington Heights and his brother Stanley and his brother's new wife, Theresa, who, returning

Case Study of a Business

2542 words - 10 pages Case Study of a Business Rexam PLC is a Consumer Packaging company. Consumer Packaging is the packaging that reaches the consumer, e.g. Bottles and cans etc. Rexam PLC is the parent company of Rexam Glass LTD among other companies, and it is based in Britain. Rexam PLC has multiple business activities. One of their activities is the production of beverage cans and bottles, and almost 80% of Rexam PLC's sales come

Marriot Restructuring This is a case study on the restructuring plan of Marriot Corporation by splitting itself into two companies, namely, Marriot International and Host Marriot.

1711 words - 7 pages MARRIOTT RESTRUCTURINGA Written Analysis of a Case by Lloyd TyBrief Synopsis of DataOn October 5, 1992, Marriott Corporation announced their plan to restructure the company by splitting itself into two separate companies. The first of the two companies, Marriott International (MI), would manage and franchise over 700 hotels and motels. In addition, it would manage food and facilities for several thousand businesses, schools, retirement homes and

Analysis of The Types of Law in a Case Study

2204 words - 9 pages defendants were liable due to the production of a faulty garment containing excess sulphite, which led to the claimant contracting dermatitis; which led to the claimant spending a long period of time in hospital. This case relates to Slump Ltd as due to the negligence shown Big Deal Ltd, 'five of the company's best customers have now transferred their business to Slump Lt's main competitor, Keynes Ltd'.The second scenario involves Big Deal Ltd and

The merger of Diamler - Chrysler.

608 words - 2 pages As with everything there are good things that come out of everything and bad things and it all depends on who and what you want to compare the two with. Immediately when Daimler took Chrysler it announced a package to reduce the work force by 20% so if you asked the people that work there they would tell you that the merger was not a good thing. If you asked the Senior CEO representatives they would tell you that it was a great thing to execute

A Case Study Depicting the Importance of Ethics in Medicine

4553 words - 18 pages review meeting which is made up of Occupational Therapy (OT), Social Worker, Nurses and the RMO. According to her case notes, when depressed, she was suicidal. The dilemma is should Marge be detained for a further 6 months in the hospital or discharged to go home. The Seedhouse ethical grid shall be used as a tool to deliberate the ethical dilemma presented in the case study (Seedhouse, 2005). The outermost layer of the grid describes ‘the

Nuclear Deterrence: A case study of the India-Pakistan Conflict

1555 words - 7 pages Development of Nuclear Capabilities The main dissertation of the paper seeks to answer the validity and the credibility of the issue of nuclear deterrence in the case of the conflict between India and Pakistan. It is perplexing and difficult to comprehend that these two countries are both archrivals and nuclear powers but still so far they have been able to avert a full-scale nuclear war among themselves. This creates the need to understand

The Economics of End Stage Renal Disease: A Case Study

1025 words - 4 pages The purpose of this paper is to discuss healthcare financing in America, as it relates to a case study about End Stage Renal Disease (ESRD). I will discuss the major reimbursement mechanisms for ESRD. Additionally, I will provide the organization’s point of view about the economics of providing ESRD treatment. I will share options and potential trade-offs related to cost of treatment, quality of treatment, and access to treatment. Finally, I

Moby Slick: A Case Study Analysis of the Exxon

2298 words - 9 pages almost daily protests ranging from local gas station picket lines to mass demonstrations outside of Exxon headquarters in Texas. " Angered customers cut up their Exxon credit cards and mailed them to Rawl, while others boycotted Exxon products. According to a study by Porter/Novelli several years after the accident, 54 % of the people surveyed said they were still less likely to buy Exxon products."(University of Florida, n.d.)Ethical issues

A Case Study: The General Election of 1951

3323 words - 13 pages A CASE STUDYTHE GENERAL ELECTION OF 1951THE SUTTON CONSTITUENCY OF PLYMOUTH'Victory but not triumph for the Conservatives, defeat but no rout for the Socialists'THE NATIONAL PICTUREBy 1951, Clement Attlee's Labour Government was on its knees. Most of the promises set out by the Labour party in its 1945 manifesto had been put into practice, leaving the party directionless. The general election of 1950 had slashed Attlee's majority to just six

Similar Essays

Case Study Analysis: Merger Of Westpac And Bank Of Melbourne

1995 words - 8 pages generous acquisition offer. The bank was offering $9.75 per common share for BML, leading to a total acquisition cost of $1.435 billion. The bid price represented $1300 of goodwill per active customer (Dow, D. 2000). BML accepted the offer and merger talks began.In making strategic decisions for expansion and increased above-average returns, a company has a number of strategic options available. In this case, BML decided that the best strategic option

Study Questions For Case 2: Apollo Hospitals Of India, Report Addressing Dr. Reddy.

968 words - 4 pages Executive SummaryDr. Reddy, you have done an incredible service for the people of India. You have started them on an incredible journey toward affordable, quality health care. You have started to reverse the "brain drain", giving bright, entrepreneurial-minded individuals an option to stay at home. You have demonstrated incredible conviction and perseverance. The hospitals that you have been able to establish in India have gained a reputation

Merger Of Daimler Benz And Chrysler Corp. How A Merger Of Two Companies Affect And Is Affected By The Global Market

1297 words - 5 pages , Maybach, smart and Setra. The second one Chrysler Corp. is a maker of American car brands such as Chrysler, Jeep, Pontiac, Dodge and trucks Freightliner, Western Star, and Sterling. The merger of Chrysler and Daimler-Benz is the biggest between two enterprises in industrial history. Promising a world's most profitable carmaker by Daimler Benz CEOJuergen E. Schrempp, the merger occurred in 1998. The reality wasn't as he thought. It wasn't that

The Linwood Method And The Bio Medical Approach: Two Of The Competing Theories

1705 words - 7 pages                                                    RUNNING HEAD: Competing Theories for Treatments of Autism The Linwood Method and the Bio-Medical Approach: Two of the Competing Theories