Hay’s health warning on NHS mergers

With the first round of 32 National Health Service trust mergers due to begin next month, Grahame Martin, general manager of European development at Hay Management Consultants, has warned trust managers that 70 per cent of mergers fail to deliver the expected benefits:

“Mergers and acquisitions create organisational stress, resulting in a drop in productivity – by as much as 10 per cent in some cases – increased absenteeism, staff disputes and a fall in standards” he said.

Martin warns that the NHS is uniquely vulnerable, because it has been subjected to considerable change recently, which raises the possibility of “change fatigue”.

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