New developments in a consolidating health care industry

The current health care industry has recently seen a great deal of consolidation in the form of mergers and acquisitions. These mergers and acquisitions invariably result in a loss of jobs. This paper focuses on two strategies that health care companies use to reduce workforce under these circumstances. Specifically, the paper will focus on the mergers between SmithKline Beckman and Beecham plc in the late 1980s, FHP Health Care and TakeCare Health Plans, and PacifiCare’s recent acquisition of FHP Healthcare. It will compare and contrast theory, strategy and practices of these six companies as they endeavoured to merge or acquire each other.