Tuesday, April 21, 2015

Merger and Acquisitions in Healthcare

Merger and Acquisitions are the buying; selling, dividing and combining of different companies that can assist an organization grow without using a joint venture. Merger is association of two companies into one, whereas an acquisition happens when one company takes over another and becomes the new owner (a large hospital system buying a home health company or a smaller regional hospital).
In the healthcare industry this is primarily driven by competitiveness and profitability. The final goal is to increase one’s ability for success. As the company wants expands its core business of healthcare service, often they also participate in different new areas of services that they are not proficient; aligning with a company who can help with that part is one option and the other could be by merger and acquisition.   

 Disclaimer: Opinions expressed are solely personal and do not express the views or opinions of any other person or entity.

Sources: Gaining and Sustaining Competitive Advantage by J. Barney
                      http://www.methodisthealth.org/

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