Merging of Departments for Cost Containment - Assignment Example

 Merging of Departments for Cost Containment Merging simply means the coming up of two or more industries to form one company. On the other hand, cost containment is a situation whereby unnecessary spending’s are avoided through proper practice aimed at maintaining the expenses incurred by the business at a certain level (Choe et al., 2015). Reasons for merging various firms regardless of its type is to reduce the losses if they were operating at expenses rather than making profits (Frech et al., 2015). Besides, they can be merged to improve on the level of competition to enable them to survive in the world market. Furthermore, it can be combined to increase the supply chain in the market and increase the workforce. Many hospitals worldwide have opted in merging their hospitals due to cost-cutting and high cost involved in maintaining patients and availing their endless needs such as enough medicine and beds to mention a few (Rahman et al., 2015). For this reason, this paper focuses on tackling how a nursing leader, chief officer, can keep both human and ethical decision making while carrying out a departmental merger. Processes, Strategic Questions, and Issues Related to Financial Resource Management As a chief officer, first step, process, will be planning how the three departments will be combined. Here, I will outline the analysis of the departments, actions to be taken during the process, and finally how the negotiations will take place between the involved parties (Breimaier et al., 2015). Also, there will be; appointment of the advisors whose purposes will be doing SWOT analysis, the ratio of the exchange, and experts report on the share ration which must be consistency. The second process which I must employ is the resolution. In this step, the management will approve the decision then followed by the stakeholders who are to be involved in the merging plan. Also, any opposing parties such as bondholders and creditors will be allowed to bring their claim within sixty days (Breimaier et al., 2015). Third and the final process will be implementation. The merging deed of the three departments will be enrolled to the registry of health-company. During these processes, the share prices will be adjusted to the ratio of the share exchange (Breimaier et al., 2015). Furthermore, the shareholders of these departments will be allowed to come in and enjoy the benefits such as; right on voting and acquiring of the dividends. Apart from the process to be followed above, strategic questions such as; how will be the outcome of the patients, will their needs be handled into completion and carefully as expected and as one of the reasons for merging, and whether the patient’s safety will be guaranteed and highly honored? The questions must be thought profoundly and whether they will be solved.   On factors to be considered pertaining finance department, one will be their trustworthiness. This will be key to the success of the merging departments. The reason is that they will be able to receive capital for the business and use them in the expected areas instead of putting them into their pockets (Breimaier et al., 2015). Besides, it will measure the success of the department for there will be records on how the finances have been used. Also, the results will be self-explanatory. Another factor that I must consider is the creditworthiness of the creditors (Breimaier et al., 2015). The creditors must be in a position to give adequate financial aid for the single merged department to thrive well and solve the above strategic questions. Despite the factors mentioned above, I will also consider the amount left when the shareholders have received their share. This will measure how the merged department is operating. It will determine whether it is making profits or losses (Frech et al., 2015). Furthermore, the assessment of the salaries for each employee will be put into considerations to calculate how much one gets and the left amount which is shared among other scheduled areas for better services when compared whey they were four (Choe et al., 2015). The acts towards the managing board for finance will assist them to be more outstanding and be able to consider goals, mission, and vision of the merged departments. Approach Description Addressing the Human Needs of the Staff Members in the Merger First, I will ensure each member who is a staff gets off after working for five days with shifts put in place. It will enable to have time with their family members and visit their friend and relatives. In addition, I will make sure they get all the credentials by promoting them after working for an extended period (Breimaier et al., 2015). This will boost their morale in work and encourage them in working fully from their hearts. Lastly, staff members’ problems will be solved amicably, and by doing so, they will be motivated by how their challenges are handled positively. The Engagement of Staff Members during the Merger In this area, I will put measures about staff members to make them feel free and more engaged in this merger plan. For instance, I will ensure that all the members are free to raise their queries concerning the decisions of merging (Frech et al., 2015). Besides, I will allow them to have their say about the movement and how they see it. The raised queries and concerns will be explained into details, and everything put into their mind in the right way (Frech et al., 2015). Through this, each staff member will feel valued and good thus engaging them into this merging plan. Maintenance of the Fiscal Focus of the Merger For this to be kept in a uniform level, I will ensure the merger’s expenditures are well monitored, and all the taxes are paid as per the existing laws. In addition, I will ensure employees benefit from their hard work by paying them all their dues in time and as planned (Frech et al., 2015). In cases of any changes concerning the payment, a formal message will be passed to them explaining the causes of inconveniences and apologizing for the same. By doing this, the merging department’s fiscal focus will be maintained. Conclusion To sum up, merging is an essential activity for various departments more so health ones for they have faced financial constraints due to the emergence of many diseases and viruses which are resistant to drugs and their maintenance is very costly compared with the economic well-being of the healthcare departments. From the above, for merging health departments, they must have a well-detailed merging process, put strategic questions into considerations, be mindful and close to how finances are being utilized and favorable approaches must be taken for the merging to be a success. Failure to adhere to these, it will not serve for a long time before shutting down due to misappropriation of funds and mishandling of staff members together with patients’ needs which are more important than anything else. References Breimaier, H. E., Heckemann, B., Halfens, R. J., & Lohrmann, C. (2015). The Consolidated Framework for Implementation Research (CFIR): a useful theoretical framework for guiding and evaluating a guideline implementation process in a hospital-based nursing practice. BMC nursing, 14(1), 43. Choe, K., Kang, Y., & Park, Y. (2015). Moral distress in critical care nurses: a phenomenological study. Journal of Advanced Nursing, 71(7), 1684-1693. Frech, H. E., Whaley, C., Handel, B. R., Bowers, L., Simon, C. J., & Scheffler, R. M. (2015). Market power, transactions costs, and the entry of Accountable Care Organizations in health care. Review of Industrial Organization, 47(2), 167-193. Rahman, M., Keohane, L., Trivedi, A. N., & Mor, V. (2015). High-cost patients had substantial rates of leaving Medicare Advantage and joining traditional Medicare. Health Affairs, 34(10), 1675-1681. Read More