I need a two slide power point for the following information:
Internal Business Audit and External Environmental Assessment.
Internal Business Audit Criteria
The merger between the two main hospitals Stanford and the UCSF medical center to work together.The merger lasted for a few years, and later the two disintegrated to operate separately following serious financial and economic issues. The audit was critical to establish the nature and cause of the financial challenges that faced the merger despite the high expectations of penetrating and maintaining the market as a joint establishment.The board members of both health centers requested an audit of the new non-profit organization following the battles over funds within the new merger corporation. Investigation into analyzing financial relationships and contributions at each of the health centers was done. More problems ensued, causing a serious financial downturn. Particularly the USHC administrator and the overall industry experts raised the alarm over the continuing financial issues and losses.
Conditions
The two companies had merged mainly to combine efforts and face the main financial and economic challenges in the Bay Area, mainly due to the Medicare Program and the medical insurance programs.Stanford medical center and UCSF pushed further to develop product lines which unfortunately sparked tension since it was seen as a bias towards the merger. Despite the merger of all other functions, the medical schools of both medical centers remain separate because the decision to consolidate the programs into a single campus was faced with opposition.It was believed that the decision was to leave the medical school at the other campus with inadequate training. It could also lack proper progress due to inadequate support from upper management. The leadership of USHC felt that the problem of other medical facilities in the Bay Area that offered significant financial challenges because they received financial aid from the government, including M.t Zion, was a responsibility of USCSF.
Cause
The main cause of the dissolution of the merger was the financial challenges facing the merger leading to severe losses.The USCF professors became upset after the ongoing financial problems and the renewed controversy about the merger. They advocated for a dissolution of the merger and an investigation of seemingly dysfunctional elements in the merger. However, the challenge could not be avoided because of the high competition experienced by the other medical facilities in the Bay Area districts that received financial aid from the government. Most losses were believed to incur in the San Francisco hospitals
Consequence
The problem between the two medical centers led to the dissolution of the merger for every facility to operate separately.The issues and risks affecting the merger are both internal and external. The financial implication of the dissolution of the merger was more losses incurred by the medical center following the government healthcare policy on the
Medicaid program.
Corrective Action
Dissolution of the merger was the ultimate action to solve the financial and management problems affecting the merger.Further investigations were recommended after the dissolution to establish the individual medical center that contributed to the lasses and predicament that faced the joint venture. Every organization felt that it failed because of the irresponsibility of the other.
External Environmental Assessment Political
The government policy of Medicare a Medicaid programs.Internal politics that raise tension among the USHC administrators. Government moves to support some medical organizations, including M.T Zion medical center.
Economic
Continued losses experienced in the USHC following the substantial financial problems in the area Internal wrangles among the Stanford trustees and USCF administrators led to increased tension.Continued government reimbursements killed the industry, forcing the merger to dissolve.The merger ran into losses because of rising drug costs and cuts in Medicare reimbursements.
Social
Most people were considering going to government-funded organizations for Medicaid and Medicare programs.The environment has gotten much nastier The merger seemed to be underperforming.
Technological
The merger experienced a technological downturn when the Medicare program and medical insurance were introduced, causing more people to access the government-reimbursed programs conveniently more than with the merged Medicare organizations.
Environmental
The merger operated in an environment where the cost of attaining medical services became too high for people while the reimbursements were capped.
Legal
Medicare and Medicaid reimbursement policy cost the merger to run at losses.
I need two slide power point for the following information:
Recommendations and Strategic Options
The primary issue that ultimately led to the merger’s failure was a need for more communication between the two partner universities. Both sides had different expectations of the merger and the goals and objectives they hoped to achieve. Furthermore, each institution had different financial models and payment structures, and there needed to be common ground between the two sides. This lack of communication led to a lack of unity and trust, further exacerbating a difficult situation. Additionally, the financial realities of the merger needed to be properly considered (De Francesco et al., 2023). The hospitals faced increasing pressure from HMOs and government reimbursement schedules, and the cost of replacing and upgrading the antiquated UCSF computer system needed to be more significantly underestimated. Furthermore, the financial losses incurred by the merger were much more significant than expected, with Mt. Zion Hospital alone accounting for 80% of the total operating losses.
Based on the above analysis, the merger of UCSF and Stanford Health Services was a bold and ambitious move that ultimately failed to achieve the goals set by the two universities. On the surface, the merger seemed to be a reasonable response to the environmental and economic pressures of the time; however, the execution of the merger was fraught with obstacles and ultimately led to its failure. (De Francesco et al., 2023). Several key recommendations should be considered to provide the Board of Trustees with a strategic plan to address the failed merger.
First, the two universities should develop strategies to improve communication and collaboration between the two medical centres. The analysis revealed little precedent for working together, and this lack of communication and collaboration was a major factor in the merger’s failure (Rose et al., 2022). This can be accomplished by establishing a governance structure that encourages collaboration between the two medical centers, such as a joint board of trustees and joint committees to oversee the operations of the merged entity.
Second, the two universities should work to reduce the costs associated with the merger. The analysis revealed that the costs of unifying the computer systems at Stanford and UCSF rose dramatically, leading to significant losses for USHC (De Francesco et al., 2023). This can be accomplished by implementing a more thorough and efficient procurement process, focusing on cost savings and getting the best value for the money. Additionally, the universities should look for ways to reduce administrative costs and overhead, such as streamlining departments, consolidating purchasing, and leveraging the combined strengths of the two medical centers.
Third, the two universities should explore ways to increase their market share of complex care to increase revenue and profitability (Rose et al., 2022). This can be accomplished by building a network of physician practices, community hospitals, and managed care technicians and leveraging the combined reputation of the two entities to draw in more complex cases from the Bay Area and beyond.
Fourth, the two universities should work to improve the financial stability of Mt. Zion Hospital, which was a major source of losses for USHC (Pullen, 2023). This can be accomplished by working with the state to secure additional financial aid for the hospital and by exploring strategies to reduce the costs associated with providing care to the hospital’s largely poor population.
Finally, the two universities should prioritize transparency and accountability in their financial operations (Pullen, 2023). The analysis revealed that financial and operating reports were not available on time, limiting the ability of management to measure performance and identify problems (Rose et al., 2022). This can be accomplished by implementing a comprehensive financial reporting system that is timely and accurate and by ensuring that all financial decisions are made with full transparency and accountability.
In summary, the failed merger of UCSF and Stanford Health Services provides an opportunity to develop a strategic plan to address the identified strategic problem and provide recommendations for the future. The key recommendations outlined above should be considered when developing this plan and serve as the foundation for developing a successful and sustainable strategy for the two universities.