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Administrators And Mergers: A Study Of Administrators' Perceptions

JHHSA, Vol. 23 No. 3, (2000)

Health care mergers have become the organizational strategy of
choice in the 20th century to contain costs and to survive economically.
Several studies have been conducted on the economic impact of
mergers on the organization and on the managerial staff of merged
organizations. Areas where there has been limited research are in the
realm of the impact of mergers on the employees, the industry, and the
public. To address these areas, a study was conducted of the perceptions
of health care administrators of both merged and non-merged
organizations in the state of Florida
A primary finding of the study was that administrators of merged
organizations held a higher opinion of the benefits of mergers in their
organizations and in the industry than did administrators in non-merged
organizations. An unanticipated finding of the impact of mergers was that
the increased competition has created a wary, hostile environment for
administrators, many of whom refused to participate in this study
believing it was being conducted by their competition. The rationale for
mergers in health care is based on the market value of competition and
future research needs to focus more on the unintended consequences of
competition in health care to which this study points.

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