The Pros And Cons Of Health Care Mergers

Taking in to consideration various disadvantages of this merging, consider the problems in health care merging that require collaboration among professional group with different training, work culture, and economic incentives (Shortell & Kaluzny’s, 2012).While the George, the CEO highlighted the potential benefits to patients from sharing resources and best practices, it is been noted that there are also some drawbacks to such large mergers. By concentrating the market power, large systems are in a stronger position to require insurers to pay more for services, which could raise insurance premiums and out-of-pocket costs. (Andrew Kitchenman, 2014). Sujoy Chakravarty, an assistant research professor at the Rutgers Center for State Health Policy, said that such mergers raise concerns about the market power of the new system. He says “There is no doubt that this level of market consolidation among hospitals would lead to what is considered a decrease in competition,” with insurers pressured to pay higher reimbursements.

The most important environmental factor affecting team performance is the organizational culture of a large organization. Culture comprises the fundamental values, assumptions, and beliefs held in common by members of an organization. Employees impart the organizational culture to new members, and culture influences in large measure how employees relate to one another and the manner in which they approach work (Shortell & Kaluzny’s, 2012). Merging require a lot of interdependent work among various professional group in the merging hospitals. There is a high probability that merging strategies will give rise to task uncertainty and Intergroup conflicts. Intergroup conflicts are common in healthcare mainly because of intergroup differences and it happens when there is high interdependency among team (Shortell & Kaluzny’s,