Mergers and acquisitions are gaining popularity as the health care industry continues to determine how to best provide services to a wide variety of patients. Answer the following questions:
What is a horizontal merger?
Why is it beneficial?
Why would a health care organization merge with another?
How do stakeholders benefit?
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Healthcare Management Capstone Mergers and acquisitions refers to the consolidation of companies/assets through different types of financial transactions. The process can include various techniques of deal like consolidations, tenders, or assets and management acquisitions (Kenton, 2019). Two or more companies should be involved in the process to make it a merger. Mergers involves two separate entities combining forces to create a new or joint organization while acquisitions, also known as takeovers, relate to the purchase of a company by another (acquired entity ceases to exist). Mergers and acquisitions are gaining popularity in the field of healthcare because of the fact that when two separate companies combine resources they become more efficient and increase productivity. When approached with an…
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