Change and Culture Essay

A merger is the combining of two or more corporate entities to create one new organization with one licensure and one provider number for reimbursement purposes (Lielber & McConnell, 2008). Mergers occur for the following reasons; a desire to increase size to gain clout for negotiations with managed care providers, the desire to penetrate new markets to attract additional customers, the need for improved efficiencies resulting from centralized administrative practices, and the desire to express overall value of promoting readily available comprehensive care (Lielber & McConnell, 2008). Mergers occur on a daily. Mergers are a type of horizontal integration. Horizontal integration combines two or more corporations together through mergers and acquisitions (Borkowski, 2005). Horizontal integration increases the merged organization market base (Cai & Obara, 2009). Competition plays a huge role in business. In each industry, organizations compete against one another to get a foothold in the market. Competition can be beneficial and detrimental to the success of organizations. Competition benefits organizations in that it keeps organizations current on the latest trends in technology and equipment. It can be detrimental in that it can cause organizations to take shortcuts in procedures that can be harmful to patients and consumers. Competition can cause management to only focus on being number one and maintaining that spot at whatever cost. Customers are left holding the bag when and suffer when organizations focus solely on competition instead of focusing meeting the needs of the customer. Some organizations and industries strive on competition. Their goal is to be the best in their field and industry. In the health care industry, competition can be beneficial if organizations maintain their focus on providing quality patient care. This paper will focus on the effects of merging a healthcare organization with a competitor. Discussions will focus on the impact the sale will have on the culture of the new organization, what I can do as a middle manager to ensure the combined staff will work together to provide quality care without taking on a competitive stance, and describing what the organization will look like in terms of systems and shape. I will begin by looking at the organization in terms of systems and shape. Description of the Organization When merging organizations, the systems and shape of the organization will change to reflect the combining of the organizations. When merging organizations you have to create a perfect blend of the two organizations to create the new organizations. The best qualities of the organizations need to be combined to make the new organization a success. The goal of a merger is to â€Å"achieve mutual benefits through synergies of mission, strategies, operations, and ultimately competitive and financial position† (Kaufman & Grube, p. 46, 2009). The new organization will combine the best assets of both organizations. Services not previously offered at one or the other organization will be offered at the new organization as a result of the change. The new inpatient and outpatient services offered will increase our patient base. Although we will be offering new services, we will also have to eliminate some services offered that are not used on a consistent basis. We will have to make cuts that will help sustain the new organization. We will also make cuts to staff. When combining organizations, some departments will have to be downsized and combined to meet the needs of the new organizations. The new organization will be structured in a way that we provide efficient quality care to our patients. Providing Quality Care â€Å"Mergers require a significant commitment on the part of leadership to understanding and addressing the challenges and potential risks inherent in such an undertaking—to both the acquiring entity and the acquired/partner-seeking organization† (Kaufman & Grube, p. 46, 2009). We have to work to find a balance between providing the new inpatient and outpatient services, while maintaining quality care. Management has to review the strengths and weaknesses of both organizations and apply the strengths to the new organization. As a middle manager, it is my job to ensure that the combined staff works well together. It is my job to listen to any concerns that staff may have about the merger and answer their questions to the best of my ability. I think the key to getting the combined staff to work together without taking a competitive stance is communication. To eliminate the competitive stance, I would hold a meeting with the new staff and give them an opportunity to discuss their concerns about working together. I would also have training seminars to make sure everyone is working to the best of their abilities and providing quality care. By realizing that there will be some minor hiccups caused the by the change, I am better prepared to handle the problems. When implementing a change to any aspect of the daily functioning of an organization it is important to realize that there will be some degree of uncertainty with the effectiveness of the change. This degree of uncertainty will be caused by the newness of the change and getting use to retiring the old operating standard (Hauptman & Tyre, 1992). It is important to face these uncertainties head-on in order to implement the change successfully. The competitive stance is caused by the degree of uncertainty, employees are unsure of how the merger will affect their job. They are afraid that the new staff will come in and take pushing them out of the way. I have to ensure the staff that we are a team and that we are all working toward the same goal of providing quality care to our patients. Providing quality care is the goal of the healthcare organization, the needs of the patients has to come first. Although healthcare organizations are a business and it is important that the business aspects of the organization are met, patient care is the main goal of healthcare organizations. The focus has to be on what is best for the patient, not how much business or publicity the organization will receive from being competitive. The merger will change every aspect of the organization; it is my job to bring unity to the new organization. The Culture of the New Organization The sale will have a huge impact on the new combined organization. Changes have to be implemented to support the new organization. Staffing and budget cuts have to be made in order to make the merger a success. The new organization has to combine the best aspects of both organizations to fill the void of what each organization was lacking. The new organization will focus on providing efficient quality services to their patients. The new organization will provide a competitive edge to the organization while maintaining quality care. The new organization will provide more services to patients that each organization could not previously provide. The combined organization will be able to create a stronger brand and reach more people. The new organization will be able to reach a larger patient base. More revenue will be gained by combining both organizations. The new organization will be able to provide care to more people in the community and surrounding communities. Conclusion In conclusion combining health care organizations will affect a larger number of people. Mergers require a commitment from both the acquiring organization and the acquired organization to work together to mutual benefits. Each organization enters into the merger to receive benefits they were not able to receive by themselves. Whether it is for financial reasons or to gain a competitive advantage, mergers are necessary for healthcare organizations to survive in today’s industry. â€Å"The healthcare industry has started to experience a musical chair situation. When the music stops, certain hospitals are going to find themselves without a chair† (Kaufman & Grube, p. 50, 2009). The hospitals without chairs have to merge in order to stay in the game. When merging, it is important to analyze the risks and benefits to ensure the success of the merger. To ensure success, the merger has to be mutually beneficial for all parties involved.