Montefiore Medical Center bought the New York Westchester Square Medical Center at $15.3 million after it faced bankruptcy issues. The hospital has been renamed and now it is called the Montefiore Westchester Square. The hospital plans to have comprehensive car services of specialty and primary, have over time, an ambulatory surgery, and have a full-service emergency department. The aim is to deliver quality care services and achieve optimum health outcomes among patients in this community (Rocchio, 2013).
Hospitals considering a merger, consolidation or sale of its healthcare facility should consider various factors. A merger takes place when one organization combine with the other and only one organization survives. Consolidation occurs when one or more than two organizations combine to form a new entity. A sale occurs when an organization is sold to an entirely new owner (Steiner, 2014).
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The factors to be considered consist of proper procedures, which should be followed including the procedures that are essentially appropriate to constituent entity by their bylaws and by the articles of incorporation. Some hospitals have special procedures such as a vote of residents of a unit of government such as a county that should be considered. Another factor to consider is careful selection of an appropriate approach to effectively address challenges such as technical complexity, mandatory changes in relationships between healthcare staff members, philosophical differences, and the decrease in number of leadership positions (Steiner, 2014).
When establishing appropriate approaches during consideration of a sale, merger, or consolidation, some legal considerations must be put in place. These include collective bargaining agreements, loans, gifts, grants, deeds, bylaws, articles of incorporation, and restrictions in state statutes. Healthcare entities are among the most widespread regulated institutions. Different healthcare institutions have different legal documents or representation and it is important to have awareness of this and ensure all legal documents are in place for the new organization (Steiner, 2014). Therefore, it is important for healthcare institutions to put into consideration the legal documents or issues when considering a merger, consolidation or a sale to avoid conflict of interests or legal problems in future.
References
Rocchio, P. (2013). Montefiore taking over Westchester Square Medical Center. Schneps Media. Retrieved from: https://www.bxtimes.com/stories/2013/5/05_square_2013_01_31_bx.html
Steiner, J. E. (10th Ed.). (2014). Problems in Health Care Law: Challenges for the 21st Century . Jones & Bartlett Publishers.
