BUSI 710 - Module 4 - Project C.docx

BUSI 710 - Module 4 - Project C.docx - Running head...

  • No School
  • AA 1
  • 9

This preview shows page 1 - 4 out of 9 pages.

Running head: HEALTHCARE M&A MODEL 1 Healthcare M&A model: Supporting the switch from fee-for-service to value-based care delivery. Liberty University
Image of page 1

Subscribe to view the full document.

HEALTHCARE M&A MODEL 2 Problem Statement The general problem to be addressed is that the mergers and acquisition (M&A) model in the healthcare industry’s provider level, has not generated the impact on the quality of patient experience and the care delivery cost expected. Healthcare providers continue to struggle through higher operating costs and lower patient experience survey results. Bauer [Gre18] states that for such a connection to take effect, providers need to adjust their operations and put patient engagement at the center of it. According to Okpala [Pau18], the healthcare of tomorrow requires a more robust and innovative way to mitigate the rising cost of care delivery. A focus on an M&A model which supports capability-building tends to outperform the industry’s current consolidation or diversification [Bob11]. The specific problem to be addressed is that the current model of horizontal provider mergers and acquisitions had not acted as a catalyst between care quality and delivery cost. According to recent research from Gallup Inc., as of 2016, 30.7% of the household income relates to healthcare costs [Gal18]. The current M&A model has saturated the local markets with operations that do not increase the availability and affordability of healthcare. Research Questions This quantitative research examines the cost and patient experience impact of a post- horizontal healthcare provider merger. The success of a provider merger is two-fold, resulting both in the reduction on operating costs, as well as increase patient satisfaction results. The effectiveness of the merger is the result of the comparison of pre and post-merger patient satisfaction results (HCAHPS) and the P&L performance of the combined organization. The resulting entity wants to derive a lower cost operation and increased patient satisfaction results, to continue realizing growth on its top-line and improved margins.
Image of page 2
HEALTHCARE M&A MODEL 3 The research questions are as follows: What is the relationship between post-merger activity and the cost of patient care delivery? This question will determine the effectiveness of the financial proforma from the merged entity. Next, the question that covers the other spectrum of the problem statement is what is the relationship between the post-merger activity and the patient satisfaction results, as measured by the Press Ganey HCAHPS results? This question will expose the post-merger impact on patient experience and how patients perceive the quality of care they receive. In examining the research questions, the focus is on mergers that have taken place post year 2006, as that is since when the HCAHPS survey has been in use [CMS13]. The survey data are available on the world wide web, along with several analytics reports. Also, the financial proforma data extraction utilizes available online resources, through published audited financial results or the schedule 990 form from the IRS. The IRS requires any non-profit organization to
Image of page 3

Subscribe to view the full document.

Image of page 4
  • Fall '19
  • NoProfessor
  • Health care provider

{[ snackBarMessage ]}

Get FREE access by uploading your study materials

Upload your study materials now and get free access to over 25 million documents.

Upload now for FREE access Or pay now for instant access
Christopher Reinemann
"Before using Course Hero my grade was at 78%. By the end of the semester my grade was at 90%. I could not have done it without all the class material I found."
— Christopher R., University of Rhode Island '15, Course Hero Intern

Ask a question for free

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern