How can the CFO convince the CEO that 200-bed hospital merges and acquires three 125-bed skilled nursing facilities, a large home health agency, and a regional multi-city durable medical equipment company is best integration strategy?

Assignment:

Carris Health is needing to develop an integration strategy that may include mergers, acquisition, and/or affiliations. Integrations options include Vertical and Horizontal integration with other providers and/or payers. Carris health want needs 200-bed hospital merges and acquires three 125-bed skilled nursing facilities, a large home health agency, and a regional multi-city durable medical equipment company.

Questions:

  • What are the advantages to the scenario?
  • What are the risks with the scenario?
  • How can the CFO convince the CEO that 200-bed hospital merges and acquires three 125-bed skilled nursing facilities, a large home health agency, and a regional multi-city durable medical equipment company is best integration strategy?