Introduction: A comparative study of a failed and a successful merger in health care was conducted in an attempt to explore the reasons for success or failure of mergers.
Materials and methods: This was a retrospective exploratory study of two mergers with the primary hospital being common. A detailed study of the existing policies and procedures, hospital records, financial data, and hospital statistics was conducted. Trends were analyzed and compared with the observed value.
Results: Reasons for the successful mergers can be attributed to managerial commitment and coordination, communication, as well as proximity of consultants of the two merging entities. Adequate strategic planning, a professional approach, and incremental implementation of necessary changes are also essential. No redressal of staff and stakeholder apprehension and poor communication are reasons for failure of mergers.
Conclusion: A merger in the Indian hospital scenario is a fairly recent phenomenon. Factors, and their interplay that result in successful or failed mergers in Indian context, are an unexplored field of research. Mergers are capital and resourceintensive, and the consequences of a failed alliance are huge. Thus, a careful, holistic feasibility study is essential before embarking on a merger.
Keywords: Alliances, Health care, Mergers, Success.
How to cite this article: Jain D, Jain K, Kaur G, Kapur V. Mergers by a Private Hospital: One Script Two Different Endings! Int J Res Foundation Hosp Healthc Adm 2016;4(2):107-113.
Source of support: Nil
Conflict of interest: None