Mergers among financial institutions have been on the rise in the recent past. There are some key drivers that make it necessary for health care organizations to consider merger as a strategy that can promote efficiency in operations. The need to enjoy economies of scale is one of the key financial drivers that necessitate mergers in the health sectors. Managing a small population of patients can be very costly. Mergers offer a firm an opportunity to increase the population by pooling together clients of two or more health organizations. Another financial driver is the desire to achieve cost efficiency in the management of such institutions. When all the administrative duties are put in a central system, the cost associated with the administration will be reduced. According to Brady and Moeller (2013), mergers also help in reducing the cost of research. Instead of the research being done by the individual firms, it will always be done from a central point, reducing the cost associated with this process. Finally, some organizations consider this alternative when they are in pursuit of infrastructural development. Improving the infrastructure of a large healthcare institution is less costly compared to the case when different firms have to do this on an individual basis. Evaluation of Organization’s Financial Performance after Merger After the merger, it is always necessary to evaluate the financial performance of the organization in order to determine if it is on the right track towards achieving the intended success (Brady & Moeller, 2013). It is important for the financial analyst to choose an appropriate criterion that will give an accurate performance of the organization. The best criteria to use would be to analyze the financial performance of the individual firms before the merger, and the new firm after the merger. As McLean (2010) says, “It is necessary to utilize both the historical and forward-looking financials to see a picture of how the company has performed in the past and how they are expected to perform in the future” (p. 90). This historic perspective will make it easy to determine the possible future performance of the organizations if the firms had not entered into a merger. With this information, the analyst would need to investigate the current performance of the organization after the merger. The two performances will then be compared. The performance of the new organization should be more impressive than the proposed combined performance of the individual firms if they were to operate independently. Analyzing the Organization’s Financial Results after the Merger In order to conduct the evaluation discussed above, it is important to understand some of the determinants that analysts would use to decide whether or not the merger generated financial results for the organization (McLean 2010, p. 56). According to Brady and Moeller (2013), the determinants that would be needed by a financial analyst at this stage are the financial statements that would specifically determine the growth that the organization has experienced after the merger. The cash flow statement, income statement, and the balance sheet are the key financial statements that will be needed at this stage. When using the income statement, the analyst will be able to determine the profitability of the new company. According to McLean (2010, p. 78), “The revenue line of the