Economics of Healthcare: Mergers, Acquisitions and Incentives Analysis

This report examines the economic implications of mergers and acquisitions within the healthcare sector. It explores the impact of incentives on physician behavior and the role of electronic health records in improving healthcare delivery. The report discusses the strategies for addressing challenges, including the implementation of effective deal structures and integration strategies. It also considers the importance of contractual protections and insurance selection in the context of mergers. The analysis highlights the importance of adapting to changes in the healthcare landscape and provides a comprehensive overview of the economic factors influencing the industry's future, emphasizing the need for proactive leadership and strategic decision-making in navigating the complexities of healthcare mergers and acquisitions.

Running Head: Economic Implications
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Transactional decision making
Like in ancient economics, the behavioral economics views incentives as important
determinants of conduct. The latter can help in the elucidation of how timing and the amount of
payment can affect behavior; the method of addressing consequences of incentives and how to
come up with an environment which supports better choice making, interactive monetary work in
health care in focusing on swaying the conduct of the patients, intercessions like the resettling
evasions, provision of the monetary motivations and also the implementation of commitment
devices (Van & Fu, 2013).
For effective address of the physician concerns with mergers, the healthcare regulatory
framework proves to be more multifaceted and far much reaching. The Well-being data
know-how for the economic clinical health Act necessitates the employment of
the electronic well-being accounts and the center for medicine and the
Medicaid providers rule (Arrow, 2014). This rule requires them to show that they are
creating a resourceful utilization of expertise. Another strategy to use is to make sure
that the patients are given the electronic copies of their medical records.
Strategies to employ as a future healthcare leader
Strategies can be laid upon to answer the questions of the physicians
and also to overcome the challenges that face the leaders in healthcare. A good
example is the strategy of domain. The strategy of domain helps in carrying
out a successful healthcare transaction (Arrow, 2014).the strategy involves the
discussion of the rewards to the physicians for accommodating new

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procedures, drugs and innovations in their work. The strategies which can be
laid out include: the deal structure which entails choosing of the correct deal
model, the integration strategy and contractual protections and the selection
of insurance.
Conclusion
There exist many variables that affect the change that is taking place or that will take
place in the near future in healthcare. Given all these changes and the strategies that need to be
applied, leaders in hospitals need to turn up to mergers so as to address the businesses and the
financial challenges that they are facing.

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References
Arrow, K., 2014. Uncertainty and the welfare of Economics of Medical care(American
Economic Review 2013). s.l.:s.n.
Van, R. M. & Fu, S. S., 2013. Do public Health Service Givers lead to ethnic differences in
Health: American journal of public health, 78(5) 345-365. s.l.:s.n.