Merger Analysis

Merger Analysis

Introduction

In recent years there has been a lot of improvement in the healthcare sector of the United States of America. Many new healthcare organizations are emerging, similarly more and more investment is done by the investors in order to provide better healthcare facilities to the people of America. Healthcare organizations are opting different options in order to create strong financial positions so that advance facilities are provided to the customers. There is a wide range of healthcare organizations providing their services in many parts of America, among them are Blue Cross and Blue Shield Association. These two healthcare organizations are providing their services in Virginia from last 60 years to the 99 million people living in different states of America. The two companies have merged to gather in order to become financially strong and work with collaboration in order to achieve one target that is to provide live saving facilities to the patients. The merger analysis report will provide guidance for the investors to have a better financial overview of the two organizations. The financial analysis of the report will also enable the users of the information to understand the debt management, cost management and capital structure of the organizations.

Discussion

According to Green and Rowell (year) Blue Cross and Blue Shield have been facilitating the people of Virginia and many other states of United States since 60 years. The two healthcare organizations are providing medical products and services to the people, always investing in technological advancement so that upgraded facilities are provided to the customers. Blues cross was a health insurance providing company that was developed in 1929. Meanwhile the Blue Shield was founded in 1939 but in 20th century it emerged as one of the best medical care products and services providing organization. In the 1982 Blue Shield merged with Blue Cross and created The Blue Cross Association. The initiative of the merger was to include health insurance facility in the list of products and services provided by Blue Shield. Now these healthcare organization firms have acquired licenses in order to officially provide the health insurance facility to the citizens of many states of America. The organization has many government employees in order to provide medical facilities to the people of United States of America. The company offer different medical plans to meet the requirements of employers, different families and individuals and individuals who are able to afford the medical plan. Apart from the daily medical facilities these organizations also provide dental and eye side plans, provides treatment for the disability of the people, specialized pharmacy services and also provides round the clock health management programs.

The organizations focused on bringing improvement in their products and services so that can bring enhancement in the health status of the people of Virginia and people living in other states. The target market of the organizations is individuals, small and large groups and the senior citizens in the market. They have also adopted integration strategy in order to create a wide ...