Health care organization have become an industry due to increase in population which increases the number of people who need health services, the emergence of new diseases and the improved living standards of people, making health care available to everyone.
Mergers and acquisitions in health care, means that the small health care organization will be replaced by large organizations. Displacement of small organizations in health care is a hindrance to availability of health care to everyone.
The large health care organizations will be viewed more like profit making organizations rather than organizations providing quality health care to patient.
The priority of such big healthcare organizations will no longer be provision of quality health care, doctor – patient relation-ship or its workers interests. Instead, the big health organizations will be focused more on making profits and expanding their markets like any other industry.
Neglect to provide quality health care and failure to put the patient’s needs as a priority will cause more patient injuries and deaths. Patients will die due to neglect and lack of proper care and medication. As a result, patients and their families will file complaints and law suits against the organizations.
This results in a negative public image of the health care organization. Margin and health care facility requires purchasing necessary facilities that are more expensive and will require borrowed capital.
This accrues large debts, making the organization charge its patients and insurers higher prices. Offering its services at higher prices will reduce its competitiveness in the market and eventually will have to close its facilities and lay off more workers.
When the small localized hospitals are used and other regional facilities are installed, health care services accessibility will be reduced. Communities that are far from the regional facilities will have less access to health care services.
The removal of localized hospitals will result in denial of health care services to the communities affected. Healthcare providers are burdened with responsibility to make health care easily available and accessible to the community but when health care is commercialized, delivery of health care services is compromised. This creates an ethical issue in terms of health care provision.
Health care availability will be reduced because, health care services will now be more expensive to make profits in the organization. Health services will be expensive and unaffordable to unprivileged members of the society. Just like any other type of industry, health care organizations will face capital shortage, leading to inadequate provision of health care services such as drug supply, admission beds and hospital equipments.
Larger organizations are well financed and can raise standards of health care services. Larger organizations provide better health services in the sense that they can hire the best practitioners in the field and purchase the best medical equipments. This way health care service can be expanded to a larger number of patients because larger organizations can monitor a significant number of clinical cases.
Impacts of mergers and acquisitions on the health care workforce
Mergers and acquisitions will lead to staffing shortages in the organization in the sense that, converting health care to an industry exposes the health care workers to the same problems experienced by other workers in the world. As a result, workers will want to change their jobs to avoid such problems, leaving the organization under-staffed.
When health care is viewed as a business, many workers will be laid off from work and services cut off to ensure that the organization makes profits in the industry. In the business sense, if a merged company is more efficient, then it will not need more workers to perform its functions. The laid off workers may not find other jobs to be assimilated in and as a result will shift jobs to other professions to have a better chance of employment.
Mergers and acquisitions in health care organizations create mistrust in the employees. Employees feel unsafe and mistrust the leadership of the organization and as a result they opt to quite their jobs. The laying off of registered nurses and other health care personnel means that, there will be an increase in the use of unlicensed health care workers, thereby diminishing the quality of healthcare provided.