The cases of mergers and acquisitions (M&A) in the care industry have been on the rise. M&A is essential in creating strategic, operational, and financial value. The primary assumption is that through M&A, hospitals can lower their unit costs, improve their productivity, and, most importantly, their economies of scale (Cutler & Morton, 2013). The style of leadership has been determined as a significant factor that contributes to the success or failure of a health organization, thus necessitating M&A. Ineffective leadership characterized by a systematic lack of visions, strategies, and goals could adversely impact the viability of a care facility. A bureaucratic leadership for instance, negatively affects professionalism and the entire process of decision-making, hence affecting the success of the hospital.
A leader’s personal values should coincide with those of the organization. For instance, if a leader wishing to improve the financial position or leverage technological improvements in their organization must demonstrate values such as hard work, innovation, creativity, and accountability among others. Healthcare leaders have the responsibility to transform the healthcare market into a successful business without affecting the quality of patient care. First, health leaders must create favorable policies that generate business opportunities and at the same time, guarantee patient safety. For example, a policy on cervical cancer for all women attending the hospital will serve two purposes, including enhancing patient safety and creating a business opportunity for the hospital.
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Secondly, leaders must remove cost as a barrier to healthcare. As such, more patients will find the services affordable, thereby ensuring that the hospital makes profits due to improved economies of scale. Hospital systems must also leverage systems to enhance leadership development for future generations. Some of the strategies that could be used in this regard include training and capacity building across all the levels. Also, the hospitals can sponsor the staff members to further their studies as leadership also comes with increased knowledge and exposure.
Reference
Cutler, D. M., & Morton, F. S. (2013). Hospitals, market share, and consolidation. Jama, 310(18), 1964-1970.
