Hello everyone, The current healthcare key factors that are driving the increase in mergers and consolidations in marketplace were named by Brown, Wearing, Walker, Burgeoned& Shields as the decreases in payment rates, indirect forcing of hospitals to find innovative ways to reduce the cost and increases negotiating clout with suppliers and payers (Brown et al. 2012). With increasing operational cost, hospitals spend more of their funds on compliance, technology and physician employment.
One of the very reasonable outcomes often seem to be integrated capital network consolidation which can reduce the cost and increase the quality of the service (Brown et al. 2012). Although The Merger of Two Competing Hospitals case study involves indirectly all 3 driving forces, the two major forces described in the study were financial losses of the Porter Regional Medical Center (PRM) and the aging facilities belonging to the Banner Regional Medical Center and Turner Geriatrics Center (BRIM) (Bookbinder& Shanks, 2007).
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My role of the Chief Financial Officer (GOOF) in this merger, as mentioned in the previous assignment, is to verse and predict the financial future of the Portraits Regional Medical Center. I believe that a GOOF can make or break the institution. If enough time and effort would be put into the merger, the GOOF can analyze the market, predict what products and services are going to bring the most money to the Portraits Regional Medical Center, divide the finances between the departments based on the degree of necessity of bringing new equipment in, new staff, more training, etc. O increase the quality, which would increase the patients’ demand, which if coupled with properly agitated reimbursement rates from the insurance companies could result in overall success.