Integrative Problems and Virtual Organization Strategy Paper

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Integrative Problems and Virtual Organization Strategy Paper Meline Constantin, Angela Currier, Brett Kinney, Nicole Mcclelland, James Schmidt, and Kevin Sult FIN 370 June 20, 2011
Cheryl Heath

Integrative Problems and Virtual Organization Strategy The medical world has started to join corporate America. Large companies run multiple hospitals and medical facilities across the world and it puts smaller community hospitals in a position that is not always beneficial. Patton Fuller Community Hospital is no exception. They have decided to expand to help meet the demand of the public and to help their hospital make profits necessary to keep the facility running. However, there are some decisions that need to be made. The hospital could have an IPO or could merge or be acquired by another hospital. To decide which option is best, Team B will weight the pros and cons of each option by showing the strengths, weaknesses, opportunities, and threats created with each option.
Strengths of an IPO, Acquisition and Merger
The strengths of an IPO in a hospital would be to raise more capital for PFCH to use for their various corporate purposes such as working capital, acquisitions, and marketing, to name a few. With PFCH taking advantage of an IPO we can take advantage of new larger opportunities that can start building toward incorporation and statewide expansion. IPOs also allow the company to access their capital more rapidly, and are relatively low risk for health care facilities, which will have the potential for increased gains and for bigger opportunities (IPO Benefits, 2011).
Mergers or acquisitions are a corporate strategy that may be initiated by a given health care entity in a community or by a corporation. In a healthcare, mergers may take place to strengthen the financial and service position of hospitals as…...

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