The Merger of Two Competing Hospitals: A Case Study

The merger is a partial or overall combination of two independent commercial companies and forms a new one. There are mainly two types in the merger. It is partial and complete. As part of the merger, usually a combination of joint ventures and stock purchases between companies is combined. Complete integration leads to the mixture of identities and the establishment of a single follow-up company. (Hicks, 2012, p. 491). The merger of the healthcare industry, particularly the merger of two or more hospital companies to a horizontal hospital, is increasing in frequency and importance.

Many studies (such as this) have found that mergers between hospitals tend to raise prices in disaster areas. A merger between a hospital and a doctor group may have similar effects. During the Obama administration, the Federal Trade Commission began to oppose the wave of mergers. It is unknown whether the trump regime will continue such behavior. Entry barriers are another factor that leads to lack of competition and price increases. A recent survey at the Mercatus Center pointed out that 36 states were not permitted to enter a new hospital without proof of request from government agencies. A visible goal is to improve the quality of care by preventing excessive competition. The Mercatus survey has questioned this claim and shows that in states requiring legal certification the quality of health care services is actually low through certain means.

Barnes-Jewish was formed by the merger of two hospitals, Barnes Hospital and St. Louis Jewish Hospital. Each hospital was built in the early 1900s and is located at the eastern end of the forest park. In 1993, these hospitals were initially subscribed by subsidiary contracts, but the two hospitals were legally merged in 1996. Barnes Hospital was founded in 1892 as a wholesale grocery store owner and beneficiary of banker Robert Barnes. Barnes executives and St. Louis will coordinate Robert Brookings, a Rui philanthropist whose purpose is to become a child of the University of Washington Medicine. Barnes Hospital opened on 7th December 1914 in the current location of Kingshighway Boulevard. The hospital was designed by the architect Theodore Link, initially 373 beds. It was around this time that St Louis Children's Hospital and medical school were reorganized in 1915.