Analysing The Merger Of Mercy West & Seattle Grace Hospital In The Show: Grey’s Anatomy
Kimaya Gupta, NMIMS, Kirit P. Mehta School of Law
ABSTRACT
The structure followed by ‘Seattle Grace’ and ‘Mercy West’ hospitals is a typical A+B=C i.e., a merger, to create the ‘Seattle Grace Mercy West Hospital’. The Seattle Grace Mercy West transaction falls within the ambit of inorganic growth. Rather than attempting to resolve its financial and operational difficulties exclusively through internal measures, Seattle Grace combined with another established hospital like Mercy West. This allows both of the hospitals to obtain resources and capabilities with synergy, rather than developing them independently. The decision arose when Chief Webber (Chief of Surgery at Seattle Grace Hospital) was admitted to Mercy West Hospital. He saw Mercy West run amok, with a severe lack of funds. Knowing the reality of Seattle Grace as well, he decided to take the leap and jump into a merger to save both hospitals from their downfall. Chief Webber only proposed the consolidation after observing the operational and financial turmoil at Mercy West firsthand. His objective was likely to introduce a fresh influx of medical talent, which was a strategic final attempt to revitalize the institution and secure his leadership, yet the initiative ultimately necessitated significant personnel reductions across both entities to mitigate the burden of redundant expenditures and salaries.
Keywords: Merger, Hospital, Grey’s Anatomy, Leadership, Revenue Growth.
