The future of hospital M&As
There has been a general decline in hospital mergers and acquisitions since the second quarter of 2020, although analysts have anticipated a future catalyst for future deals. The outbreak of the COVID-19 pandemic led to reduced partnerships due to social distancing restrictions and diminished patient volumes that saw reduced labor and supply expenses. Despite the ravaging impacts of the pandemic, analysts have anticipated a future increase in strategic and innovative partnerships to effectively align opportunities for healthcare growth and expansion.
The coronavirus pandemic has sparked off a recession in the United States since there are no signs of improvement in the country’s labor market and the pandemic has hurdled the economy for over a year now. Americans have started feeling unsafe with their personal finances, citing that the pandemic will adversely impact their financial status and wellbeing. Many citizens have resorted to saving the little cash they have to prepare for the unforeseen future and meet their long-term financial goals. The reduced cash flow diminishes the flow of revenue to hospitals. Again, millions of Americans have their jobs amidst the pandemic, and they have been unable to pay for insurance coverage, citing that they are unsure when their finances will ever recover. The situation has resulted in a dramatic decline in the utilization of healthcare resources and facilities due to worsening conditions. Generally, there is a reduced healthcare utilization rate among acute care patients.
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Transformational leadership is important in boosting employees’ confidence and improving staff respect. Transformational leaders communicate effectively to ensure loyalty that emanates from a shared vision. Transformational leadership that is based on these strategies can increase productivity and boost employee morale and ensure overall hob satisfaction. In this regard. Again, autocratic leadership can help managers of healthcare organizations increase the safety of all patients in emergency situations due to their ability to make informed decisions without consulting staff (Sfantou et al., 2017). Applying such leadership concepts can help improve the quality of care, increase productivity, and achieve long-term healthcare goals, such as safety, effectiveness, reliability, and efficient and equitable patient-centered healthcare services.
However, healthcare organizations that use the laissez-faire leadership style are subject to failure because such leaders do not make decisions without consulting their colleagues. The duration the staff take to make decisions can be lengthy and involving several procedures, and this can compromise their ability to plan their tasks and classify roles succinctly. The lack of support and recognition among employees leads to poor monitoring and performance metrics tracking; hence, contributing to low-quality clinical outcomes. However, healthcare organizations that utilize transformational and autocratic leadership styles will realize success in their long-term goals, as reflected in the quality measures, such as structure, process, outcome, and patient satisfaction (Sfantou et al., 2017). Generally, patients will record positive outcomes and overall satisfaction, as evident in the shorter length of patient stay at the emergency departments, reduced hospital morality rate, and limited healthcare-associated infections. The type of leadership style greatly impacts the quality of care by improving pain management techniques, increase pain management, and minimize fall rates as much as possible.
In my opinion, leadership is the root cause of M&A failures. In the contemporary world, M&As have a direct relationship with the leadership style employed in any organization (Berkow, 2017). Leadership reinforces harmony and understanding in every organization, and this is a standard procedure in most-post merger processes.
References
Berkow, K. (2017). Importance of effective leadership for the success of mergers and acquisitions. Theses and Dissertations , 793. https://digitalcommons.pepperdine.edu/cgi/viewcontent.cgi?article=1792&context=etd
Sfantou, D. F., Laliotis, A., Patelarou, A. E., Sifaki- Pistolla, D., Matalliotakis, M., & Patelarou, E.(2017). Importance of Leadership Style towards Quality of Care Measures in Healthcare Settings: A Systematic Review. Healthcare (Basel). , 5(4): 73. https://www.ncbi.nlm.nih.gov/pmc/articles/PMC5746707/
