Impact of Health-Care-Industry Merger

For employees in the health-care system, industry consolidation that occurs because of M&A activity can be reduced to a very familiar term: downsizing. To be sure, the health-care industry itself does not resort immediately to that term. Instead, it appears to prefer terms such as business process redesign, or "reengineering" (O'Neil & Riley, 1996), which involves cost control as much as staff expertise and training. Where cost is an issue, staff preferences are secondary to market needs and/or dynamics:

New market-oriented health care organizations are willing to restructure care delivery without any concern for protecting traditional professional roles. Such efforts have aimed to reduce the number of staff who interact with patients, allocate tasks to appropriate staff based on level of training, and reduce the overall size of the RN staff (O'Neil & Riley, 1996, p. 107).

De-staffing or reengineered staffing is an inevitable consequence of M&A activity, and it cuts off personal staff contact with patients, which c

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