How Hospital Mergers and Collaborations Affect the Pharmacy

Hardly an industry has seen so much change in the past few decades than the healthcare industry. The need for cost-effective treatment, the increased number of insured patients, and the demand for error-free care are all factors that have changed the face of the field, and it continues to improve every day. And as the industry is working to perfect itself based on the changing needs of the population, it is building a stronger community of employees and institutions, and it’s learning that working together leads to better care. Mutually-beneficial collaborations are emerging at a rapid rate.

Why do Hospitals Merge or Collaborate?

A merger happens when a hospital acquires ownership of another one, and the two combine forces to offer care under one name. Mergers often occur when one hospital is looking to expand by acquiring others, or when hospitals see it financially beneficial to merge into one.

A collaboration, on the other hand, is a partnership between hospitals to share resources and services in order to optimize care, while each hospital remains an independent entity. This is often seen between a community hospital and a larger institution, to the benefit of both. The smaller hospital is able to maintain local care and keep the familiar, trusted name while utilizing the expertise of the larger one. This allows the hospital to reduce operating expenses, improve the quality of care, maintain customer loyalty, and increase referrals between institutions.

What Does a Merger or Collaboration Mean for a Pharmacy?

The pharmacy at the hospital can also benefit from a collaboration. They can expand their services to more customers, combine expertise to improve care, and grow their staff to better serve patients. They can also use each other’s resources during drug shortages, or physicians can refer patients to the other institution if they don’t carry a particular medication. Mergers can lead to a larger pharmacy with a combined force of pharmacists.

Mergers and collaborations can result in a stronger pharmacy as a whole. Often times, a pharmacist will have more resources to work with, other specialty pharmacists to refer to, a stronger policy in effect to reduce medication errors, and less of a financial pressure to beat the competition.

What’s in Store?

Hospital mergers or collaborations can certainly bring a lot of change, but change can be good, especially if the ultimate result is better treatment practices. When it comes to health and well-being, there should be nothing that stands in between the patient and their right to excellent health care.

Industry experts are predicting that non-ownership collaborations will continue to rise instead of mergers. Combining resources while continuing to operate under an independent and trusted name is beneficial for both the institutions and the patients. If you’re looking for a career in a hospital pharmacy, the outlook is good due to the rising need for specialty workers and the expansion of the customer base when it comes to mergers and collaborations. Optimal health is a community effort, and it takes a well-functioning and specialized team to achieve it.

Sources:

http://www.medscape.com/viewarticle/464668

http://www.beckershospitalreview.com/hospital-transactions-and-valuation/keeping-healthcare-local-why-some-providers-choose-non-ownership-collaborations-over-mergers.html