CRA500 CASE MOD 2

CRA500 CASE MOD 2 TUI University 18 May 2016 1] Choose any 2 ways health care organizations integrate or consolidate. Define and give a health care example of each type of integration you chose. Health care institutions may consolidate through mergers where the operations of the two or more organizations mutually agree to exist as a single entity (Burns & Pauly, 2002). This option is preferred when the established entity will benefit from economies of scale. This lowers the unit costs especially when the consolidated institutions are near one another. This is also related to consolidating the administrative functions with the aim of reducing costs and improving savings, but care should be exercised as the benefits of administrative consolidation may not trickle down immediately. Nonetheless, consolidating volume is difficult for healthcare organizations. Similar to business enterprise mergers, increasing the asset base of the consolidated organization improves access to capital. In 2015, Beaumont Health System with Oakwood Healthcare merged and Botsford Hospital created the Beaumont Health, to improve quality of accessible care in Southeast Michigan (Greene, 2015) The network model entails health maintenance organizations (HMO), working with other health care institutions and systems. Similar the entities integrate services to lower care costs, where care is integrated through liking with the providers. The model approach is increasingly popular where organizations support collaborative leadership and the unique capabilities of the institutions (Burns & Pauly, 2002). The various health providers in a network work to improve health care needs and have common objectives, depending on the population that they serve. The network health care model also improves the delivery of health, and the economies of scale as there are various patients connected with the network. The Florida-based Metropolitan Health Networks, Inc is a health care service network where healthcare providers and providers can be contacted, catering to the needs of senior patients using Medicare. 2] What lessons can health care administrators learn from studying mergers that have failed? Health care administrators are under pressure to reduce health costs while providing high-quality care and mergers is one of the options to achieve this. The leadership and management of the consolidated/ integrated institutions should be clear what they expect from the merger and communicate clearly about this. There are likely to be winners and losers when there is consolidation, and the new management then should focus on eliminating differences and bring the stakeholders on board. Failure to acknowledge that there were differences before the merger complicates matters, as the new management and all the employees now have to follow one workplace culture over another. This increases the risk of friction and conflict because people have different expectations while working for the new entity (Sidorov, 2003). At other times, the cultural differences may be huge than previously thought affecting the way people interact in the workplace. Upon mergers and consolidation, the administrators ought to integrate a...