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    Disproving of Strategic Alliances

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    Strategic alliance with other organizations is a commonly used strategy in today's healthcare environment. Assume that you were the administrator at ABC hospital that will sign a contract with XYZ hospital to form a strategic alliance. The physician leader at your hospital disproves of this deal and tells you that he will resign once the contract becomes effective. How will you respond to the physician leader?

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    I would initially respond to the physician leader by reiterating to him or her the many benefits that this hospital with receive from a strategic alliance with XYZ hospital. One of the first things that I would tell the physician leader, is that the overall marketing and healthcare environmental situation creates a need for alliances in order for most hospitals to remain viable and profitable organizations, and that if this strategic alliance was not formed, this hospital would suffer financially, which would serve to hurt the staff members within the organization, due to the fact that there would need to be staff reductions commensurate with the budget reductions that would invariably be taking place without ...