Analyses And Countermeasures To The Problems Of Hospital Mergers And Acquisitions

Hospital mergers and acquisitions can be a way of hospital expansion and growth.Mergers and acquisitions have occurred in China since the 1980s.Hospital mergers and acquisitions are in full swing in pace with the development of economic.Both domestic and foreign capital quicken the pace of grabs for health resources,by using many forms of capital operation such as mergers and acquisitions,when China's hospitals as the main body of medical market shall be in line with international practice,especially after China's entry into WTO and opening up of medical service industry.All these hospitals such as public hospitals and enterprise hospitals are under tremendous survival pressures which resulted from the state insufficient investment for public hospitals and separation of enterprise hospitals from the state-owned enterprises,when Chinese hospitals are still in the stage of reformation and restructuring.Hospital mergers and acquisitions can realize integrating the resources such as assets,staff,technique and subject by the low cost expansion of superior hospitals,which can create benefits from mergers and acquisition to fight for the survival development.Firstly,this paper introduces the related theories of mergers and acquisitions at home and abroad,and analyzes the background,present state and motivation.Then this paper describes the whole process of mergers and acquisitions between Z public hospital and F enterprise hospital.Both of the two hospitals have achieved the approvals of higher authorities and consents of staffs and signed up the preliminary frame agreement during the preparation period.The two sides have discussed the fund of mergers and acquisitions and signed up the formal agreement including the content,receiving delivery system,responsibility of breach of contract and other matters in the sigpning stage.The smooth transition of mergers and acquisitions has achieved during the integration.This paper analyzes the strengths,weaknesses,opportunities and threats of Z public hospital and F enterprise hospital by using SWOT methods.This paper points out existent problems such as the accuracy of valuation,professionalism of team,message asymmetry,singleness of payment,personnel placement and contradictions and conflicts in the process of integration.This paper puts forward countermeasures based on the specific problems,through determining the strategic purpose,fully grasping information,organizing the professional team,evaluating the value of the target hospitals scientifically,selecting the appropriate payment and paying attention to the integration of resources.Finally,because of the effects of government's policy direction,people's demand,level of technique,and development of market on hospital mergers and acquisitions,this paper also gives some suggestions such as establishment and improvement of laws and regulations related to hospital mergers and acquisitions,promoting marketization of medical industry,strengthening the guiding function of government and standardizing the behaviors of hospital mergers and acquisitions.