What is the market overview of East Chestnut Regional Health System (ECRH) was formed through the merger of three organizations, the East River Medical Center (ERMC), the Northern Mountain Hospital Consortium (NMHC) and the Archway Hospital (AH). 

Answer:

The market overview is that as a result of EMRC, NMHC, and AH, ECRH was formed to these three entities' interest. This kind of merger is referred to as a horizontal merger as it entails three businesses in the same industry coming together to form one company. ECRH was created as a result of consolidation, and therefore it is owned and operated by the three entities. This could be because there was a need for lowering costs; hence merging would be the best option. Also, merging into one is likely to improve performance and lead to faster growth, unlike operating independently.

Additionally, the increase of the market share and broader market access due to positioning is another factor that would lead to the merging. This is because each one had its strengths, and now, with the consolidation, they are likely to offer diversified and better services hence profitability. The consumers also will be able to get everything under this umbrella instead of moving from hospital to hospital. Taxes are also another factor that could have led to the merger. They can pay less tax as one entity is reason enough to consolidate to reduce costs. An increase in technological development is evident when all three entities pool their resources to ensure efficient service delivery. When they merge, making these improvements is possible, which may be expensive to do as one entity.

However, this merger has its shortcomings, including higher monopoly power resulting in higher prices due to the increase in the market share. Since most people come here for medical services, they are likely to be charged higher. Also, there is a possibility that jobs will be lost. This is because all the facilities had employees, and due to merging, there is no need for having more employees doing the same job; hence only the best will be chosen, leaving the others unemployed. These are the most likely issue that is bound to rise as a result of the merger.