Merging Cultures: Organizational Culture and Leadership in a Health System Merger.

EXECUTIVE SUMMARY: Health system mergers and acquisitions have increased exponentially in recent years as an apparent result of the Affordable Care Act. Mergers and acquisitions are seen as a way to control interdependencies within the market, control costs, leverage debt, and negotiate better rates among health insurers. Regardless of the impetus for a merger, the largest predictor of its success or failure lies within the organizational culture. The purpose of this research was to assess the current organizational culture and preferred organizational culture of two competing health organizations prior to a planned merger, and then to determine whether there were significant differences between the premerger cultures and the postmerger preferred organizational culture using the Competing Values Framework (CVF). Current culture is defined as the premerger culture as measured by the CVF, and preferred culture is defined as the self-identified preferred traits and characteristics of the postmerger culture as measured by the CVF. The study findings indicated a statistically significant difference between the premerger cultures of the health systems. However, respondents from both health systems preferred a postmerger organizational culture that was statistically the same. A review of the results along with best practices for health system leaders follows.