Description
See document: Healthcare Financial Management Association & Deloitte Center for Health Solutions (DCHS). (2017). Hospital M&A Research (Links to an external site.).
From the Healthcare Financial Management Association (HFMA) article, we learn that Mergers and Acquisitions (M&A) have been increasing since 2009, as the industry seeks to scale. The presentation provided is a collaboration of HFMA and the Deloitte Center for Health Solutions and provides quantitative and qualitative research to understand the impact of M&A activity on acquired hospitals.
In the presentation, they identify that not all M&A have been successfully implemented (p. 16).
Three of the aspects they identified as having led to successful M&A include:
- A clearly defined operating model for the acquired facility (p. 18);
- Effective and efficient communication (p. 19);
- Work culture that supported proposed strategy (p. 20); and
- After much negotiation, the healthcare company you work in, will be acquiring a smaller healthcare company and a related physician practice in the area. You have been placed in charge of the acquisition team for this project.
Executive Proposal
Present to senior management a 3-4-page executive proposal of how you would implement the said acquisition. Specifically explain (1) how and (2) why you would incorporate the three aspects identified, and (3) the consequences of not incorporating any of the aspects.
The paper should be well-written and meet the following requirements:
- 3-4 pages in length (excluding title and reference pages),
- Formatted according to the CSU-Global Guide to Writing and APA (Links to an external site.), and
- Include at least three current references from peer-reviewed articles. The CSU-Global Library is a good place to find peer-reviewed articles.
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Explanation & Answer
Attached.
Running Head: MERGER AND ACQUISITION
MERGER AND ACQUISITION
Name
Institution
Date
MERGER AND ACQUISITION
Strategic vision in merger and acquisition
Merger and acquisition processes are never an easy process for the company. The
operation comes along with a myriad of activities that the participating companies need to
follow. The method also requires the companies to exploit and make the necessary decisions to
make the transition successful. However, when HFMA and the Deloitte Center for Health
Solutions have no vision or mission that is known to the public, then there is bound to arise many
errors in the transition process (Soundarya et al., 2018). Therefore, in the merger and acquisition
process, the organization vision comes first. The merger process comprises of three phases,
which include planning, phase, acquisition phase, and integration phase. The post-integration
process covers the operational process of the Merger and acquisition. It is the stage that will
determine the success of the merger and acquisition process. In making the process successful,
HFMA, and the Deloitte Center for Health Solutions need to communicate issues like:
1. Maintenance of the customer relationship while at the integration phase. Allocation of
responsibilities.
2. Documenting of the management responsibilities.
3. Knowledge transfer between the units that need to be integrated.
4. Managing the staff suspicion on the merging companies.
5. Integrating the groups into one organization.
6. Coming up with a new management structure to overcome the leadership problems
that may arise from the new entity. Communication of a new strategic objective and a
mission for the merged organization.
Organizatio...