Assignment title: Information
You are the chief executive officer (CEO) of a 200-bed
nonprofit community hospital that serves a rural
community with a population of 50, 000. The
demographics include a median household income of
$38,000. Currently, slightly less than half of the
population (45%) has employer-sponsored insurance,
with 35% having a combination of Medicare and
private supplemental insurance and the remaining 20%
being uninsured. The population is aging, with 40% of
the population expected to reach Medicare eligibility
age within the next 5 years, where employer-sponsored
insurance will shift to Medicare or a combination of
Medicare and other supplemental insurance.
A group of internal medicine physicians specializing in
geriatric medicine, including joint replacement
surgeries, is looking to expand their services. The
physician group has approached the hospital about
merging their services with the hospital and expanding
the hospital to include an ambulatory care center and
outpatient surgical center.
Based on your analysis of the scenario, explain the potential risks and benefits of the merger. Be sure to
address the following:
What, if any, opportunities are there for cost control if the decision to merge with the physician
group is made by the hospital?
What are some of the changes in Medicare reimbursement that could affect the long-term success
of the merger?
Would the community hospital be better served by countering the physician group's offer to
merge with the hospital or would acquiring the physician group better serve the hospital's
interests?
Describe any ethical considerations that could influence the CEO's decision.
Write a 3–5-page paper in Word format. Utilize 2–3 scholarly sources in your research. Your paper
should be clear, concise, and organized; demonstrate ethical scholarship in accurate representation and
attribution of sources; and display accurate spelling, grammar, and punctuation. Apply APA standards to
citation of sources.