Question

Discuss the impact of mergers and acquisitions in the healthcare community. When are they good or not good?

Answer 1

Impact of mergers and acquisitions in the healthcare community is the creation of powerful collaborative environment wherein the assets and liabilities of companies are shared with each other or overtaken by a company. This leads to a powerful brand and there are chances of increased revenue and profits for the company due to technological advancements and ponit of differentiation created due to mergers and acquisitions. The healthcare community is able to offer better healthcare facilities to the patients and develop better infrastructure and technology due to mergers and acquisitions of different healthcare organisations.

Mergers and acquisitions are good when they result in better sharing of resources and better infrastructure created due to it. Also when the merged or acquired entity is able to generate better revenue and profit levels due to it, it is considered as good. Moreover the experienced and skilled workforce, better equipment, machineries and other resources obtained due to merger or acquisition results in better environment. Mergers and acquisitions are bad when the final entity created does not serve its purpose and also incurs further losses. Also when the pooled resources of the merged or acquired entity does not have adequate experience or skillsets, then the merger or acquisition is considered as bad.