Managing Strategic Alliances
Dr. Jeff Kaluyu
November 21, 2014
In today's world, companies around the globe are turning to alliances as cooperative, inter-organizational mechanisms for adaption. This process of alliances is designed to achieve strategic purposes that are not attainable by a single organization. Today, health care delivery is being rearranged as hospitals are consolidating and aligning at a dizzying pace with physicians practicing in groups and these groups are beginning to consolidate to maintain the control over the delivery of medical care services and cost. Alliances are the organizations of the future. It arises out of mutual need and the willingness between organizations to share risks and cost, knowledge and capabilities, and involves interdependencies to reach common objectives. With this complexity regarding patient demographics, healthcare practices and regulations, and changing technology, this paper will address the main issues, advantages, and disadvantages regarding the importance of managing strategic alliances, the cost associated with the creation, and the implementation of an alliance among health care organizations.
Alliances in Health Care
The word "alliance" varies from executive to executive, company to company, and industry to industry but companies do approach forming an alliance in a variety of different prospective. Alliance can be defined as connection, affinity, participation, cooperation, agreement, understanding, relation, collaboration, partnership, affiliation, and unionization among two or more organizations with a common objective to cut costs and increase market position. Alliances are legion. It arises out of mutual need and a willingness between and among organizations to share risks and costs, to share knowledge and capabilities, and to take advantage of interdependencies to reach a common objective. The...