Assume that the healthcare industry wants to expand and that its only option is a merger. Now the...

Question

Assume that the healthcare industry wants to expand and that its only option is a merger. Now the industry is confronted with government regulations to oversee the merger.

Write a four to five (4–5) page paper in which you:
1. Explain why government regulation is needed, citing the major reasons for government involvement in a market economy.
2.Justify the rationale for the intervention of government in the market process in the U.S.
3.Assuming that the merger faces some threats and that the industry decides on self-expansion as an alternative strategy, describe the additional complexities that would arise under this new scenario of expansion via capital projects.
4.Analyze how the differentforces will come together to create a convergence between the interests of stockholders and managers.
5.Speculate about the implications for the goals of the firm as to whether to maximize the industry’s profits or to create more value for the shareholders.
6.Use at least three (3) high-quality academic resources in this assignment. Note: Wikipedia and other Websites do not qualify as academic resources.

Your assignment mustfollow these formatting requirements:
Be typed, double-spaced, using Times New Roman font (size 12), with one-inch margins on all sides; references must follow APA or school-specific format. Check with your professor for any additional instructions.
Include a cover page containing the title of the assignment, the student’s name, the professor’s name, the course title, and the date. The cover page and the reference page are not included in the required page length.

David · Accepted Answer

Expansion of Health Care Industry and Government Regulation                                                   1
Expansion of Health Care Industry and Government Regulation  
Course Name:
Date: 
Instructor’s Name:
Expansion of Health Care Industry and Government Regulation                                                   2
Introduction to government regulation 
Government regulation arises when there are certain laws and restrictions, governing the 
activities (or tasks) of a particular industry or business and how those tasks or activities need to 
be performed. These laws and restrictions are enacted or defined by the decision of legislators 
and executives.  The concept of government regulation in not a new phenomenon in world 
economy and has been in the existence since the time of first thirteen American colonies. The 
government regulation so far has been for achieving purposes like attaining socially optimal 
outcome, industry protection, controlling imports and exports, tax revenue etc.  The issue of 
government regulation has always been a contentious in a sense that it does not allow market to 
function freely and therefore creates inefficiency in the market. But the issue has gone through 
lots of discussions with the passage of time and therefore much flexibility has been allotted to 
business houses for making decisions. Broadly, there can be two types of government regulation: 
1. Industrial/economic regulation:  When behavior /activities of an industry 
are regulated by the government, then we have economic regulation.  The regulation of 
this kind can take many forms such as regulation of output decision, price decision, profit 
or of production methods etc.                         
2. Social regulation: The form of Regulation which have been designed to 
achieve social objectives such as prohibiting or discouraging the harmful behavior 
corporate houses which lead to environmental degradation. Social regulation exists to 
achieve social goals such as environmental protection and encourage corporate houses to 
behave in the welfare of society and environment.  Some production activities have some 
kind of negative impact on environment (for example Steel industry creates pollution), so 
to discourage corporate houses from indulging in all these activities, social regulation is 
Expansion of Health Care Industry and Government Regulation                                                   3
imposed. The Cap on emission (greenhouse gas emission), for example is one kind of 
social regulation.
Major reasons for government regulation/involvement into market economy 
There are many reasons for regulating a market. The first reason is public safety and 
welfare. Industries like steel, coal, mines have various repercussion effects on the environment. 
These industries are highly polluted industries and therefore have significant harmful impacts on 
nature, on human health, and on well-being or on community structure.  So they should not be 
allowed to operate freely and their activities should be regularly monitored and overseen. Hence 
government regulation is necessary here.  
The second reason is protection of industry.  There are some industries which need entry 
protection and therefore regulation of those industries is necessary. For example,

Assume that the healthcare industry wants to expand and that its only option is a merger. Now the industry is confronted with government regulations to oversee the merger. Write a four to five (4–5)...

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