The Merger of Two Competing Hospitals

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- How should management deal with the physical structures at the time of the consolidation?

While learning from the financial catastrophes of the two former two hospitals, this new transition should focus on building the reputation and success of the new facility. Hospital A should simplify its scope of services. If they were to cut some of its weaker programs, it would be a great benefit to slowly shift to specialty services. They would build a reputation using significant strength in a few areas than having moderate performance in many areas.

- How should the duplication of services and departments be handled?

To avoid duplication of job functions, each job description and its duties should be closely evaluated. The development as a result of the unification should be expected. In some areas where duplications of services occurs, job reassignment should be noted so that no personnel are laid off. Once a structure is recognized, HR and the executive team are responsible in establishing new job descriptions specific to Portsmouth Regional Medical Center. If staffing shortages should occurs, HR is accountable to fill open positions with qualified personnel. For the new hospital to functions at an industrially advanced level, training programs need to be installed.

- What are the risk management issues and legal issues associated with the merger?

The environment of healthcare can limit innovation and originality because of safety requirements and strict legal in place. This is particularly important in a merger because it is a new concept that will need to follow all necessary regulations starting from day one. Laws within the healthcare field act as a barrier to leaders, but it is one that can be overcome through the use of consultants and other thorough 3rd party checks during the planning and implantation process. Some examples of legal issues that may relate to this merger are antitrust regulations, federal moratoriums on certain services, and safe harbor requirements. These protocols will all challenge an administrator’s ability to lead, but not prevent them from it. There is a lot of risk associated with the creation of a new facility. A successful leader should be mindful of both risk management and physical safety concerns. Following OSHA standards and investing in safety education throughout the hospital can maintain the safety of patients and employees.