Complexities of Change Management Strategy During Healthcare Mergers

Complexities of Change Management Strategy During Healthcare Mergers

DOI: 10.4018/978-1-6684-8822-5.ch016
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Abstract

Change management and leadership is a complex set of efforts and processes that frequently lead to failure for many organizations due to a need for more sound organizational development techniques. For healthcare organizations, change management and leadership can be even more difficult than in other industries, with implications that could lead to unhealthy patient care and, for some patients, ultimately, death. The COVID-19 global pandemic helped to shed light on the need and importance of ongoing first-order and second-order change in healthcare organizations to remain relevant and continue providing adequate, quality care. This research utilized the case of Apollo Global Management's acquisition of Wilson Medical Center to shed light on the difficulties associated with various forms of change in healthcare settings and the critical need for leveraging good organizational development, strategy, and leadership practices.
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Problem Statement

Over the past few decades, private equity firms have infiltrated the healthcare sector with mergers and acquisitions (M&A) of hospitals emphasizing revenue over patient care (Baloh et al., 2017; Cerullo, 2023). For example, healthcare professionals working in rural communities face massive budget cuts leading to a lack of resources, forcing healthcare clinicians into exacerbation, and declining patient satisfaction and health outcomes (Hall, 2021). As a result, at least 140 rural hospitals have closed since 2010 due to what private firms deem as “financial strains” (Tkacik, 2022).

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