...Change and Culture Case Study I Nikiah C. Roberson HCS/514 Monday September 24, 2012 Dr. Kinaro Change and Culture Case Study I Case Study Robbins Hospital has been competing with Smith Hospital for over a decade. Robbins offers both in and outpatient services including day surgery, wound care, and physical and occupational therapy. Robbins is one of the oldest hospitals in Savannah and is currently being updated with state-of-the-art technology. Smith is more modern, with technology such as telemedicine, PET scans, and the use of the electronic medical records program. Robbins has constantly honored itself on the great quality of care provided to its patients. Smith on the other hand, is known for giving the kind of care to patients that is not always of good quality. Over the last decade a merger took place between Robbins Hospital and Smith Hospital, joining Robbins who has a high quality of patient care with Smith who has modern technology. The newly named hospital will be called Robbins/Smith Hospital. The administrator who has been an administrator at Robbins for more than a decade will have the task of creating an organizational culture that will not only meet the needs of staff, but also provide quality patient care. The administrator at Smith Hospital has a duty to direct the group of employees as one in a way that forms a positive and comfortable work environment. The purpose must focus on the mission and goals of the newly merged facility, with...
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...Change and Culture Case Study 1 The struggling economy, the emergence of new technology and the government’s healthcare reform is pushing hospitals to seek refuge in another resulting in a merger. A merger is the consolidation of two establishments into a single legal entity (Hayford, 2012). In the health care industry, mergers are rising in numbers. Mergers transpire due to a variety of reasons; to increase in size to gain better negotiation power with managed care providers who tend to bypass smaller organizations, to penetrate new markets to attract additional customers, to improve efficiency evolving from centralized administrative practices, and to express overall value of promoting readily available comprehensive care by shoring up smaller community-based facilities, keeping them from closure (Liebler & McConnell, 2008). Despite the reason for the merger, when two health care organizations merge, the organizational dynamics change considerably from the leaders in the board room to the medical staff on the hospital floors, and the impact has a short and long-term ripple effect throughout the newly formed organization as performance, mission, values, and culture will be restructured. The restructure of a new organization resulting from a merger and the role of the middle manager in developing an environment that the combined staff can work on will be analyzed further. Additionally, a description of the newly formed organization from the merger in terms of system and shape...
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...and Culture Case Study I Elizabeth McCarthy HCS/514 April 1st 2013 Kendra Slatton, RN, MSN, CDE Practitioner Faculty University of Phoenix Online Change and Culture Case Study I For more than four decades, mergers have engrossed researchers. They are enticed by the increasing frequency and failure of mergers. Mergers and acquisitions are both precarious and complex. As they become more common, researchers are captivated in the inclusive effect a merger has on the internal and external cultures. From the initial announcement, to the long process of integrating the companies, researchers examine the changing dynamics of the parties involved. Those parties range from economies to individuals. Financial institutions and industrial corporations use mergers to increase profit and reduce cost. One outlook on mergers is that they provide quick opportunities to obtain new knowledge and resources. Conversely, for other employees thrill, gambling, changes, growth, anger, disposition, greed, and uncertainty altogether accompany a two party unification. The commonality of failure or weak performance of companies that undergo a major fusion leaves little to desire and unlimited skepticism. Lower-level employees are overcome with worries of personal threat, job insecurity, organizational change, and loss of personal identity within a new-pooled company (Miczka, & Größler, 2010). David Thyser agrees by stating, “Studies on M&A success/failure...
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...Week 3: Case Study HCA642 Healthcare Policy, Law, and Ethics Issue The Federal Trade Commission (FTC) and the State of Missouri are seeking a preliminary injunction under section 13(b) of the Federal Trade Commission Act (FTC Act), 15 U.S.C. Section 53(b), which “authorizes the Commission to seek preliminary and permanent injunctions to remedy any provision of law enforced by the Federal Trade Commission. Under the first proviso of Section 13(b), whenever the Commission has ‘reason to believe’ that any party ‘is violating, or is about to violate’ a provision of law enforced by the Commission, the Commission may ask the district court to enjoin the allegedly unlawful conduct, pending completion of an FTC administrative proceeding to determine whether the conduct is unlawful. Further, under the second proviso of Section 13(b), ‘in proper cases’, the Commission may seek, and the court may grant, a permanent injunction” (www.ftc.gov). This particular injunction is meant to refrain the enjoining of the merger of two commercial hospitals in Poplar Bluff, Missouri. Lucy Lee Hospital wishes to purchase Doctors Regional Medical Center (DRMC). In this case, the plaintiffs, FTC and State of Missouri, argue that the proposed merger would considerably lessen the competition between other acute care hospitals in the Poplar Bluff area (https://scholar.google.com/scholar_case). The question stands: is the proposed merger between Lucy Lee Hospital and DRMC a violation of the Clayton Anti-Trust...
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...GEISINGER MEDICAL CENTER: AFFECTS OF THE MERGER ON EMPLOYEE BENEFITS Executive Summary I. Introduction The purpose of this case study is to evaluate the effectiveness of the changes in employee benefits as a result of the merger. II. Situation As of 17 January 1997 our HMO, the Geisinger Health System (GHS) merged with the former Penn State Milton S. Hershey Medical Center (HMC). Since then we have moved forward as Penn State Geisinger Health Systems. The merger brought together two long-standing giants in Pennsylvania health care. Both organizations were not-for-profits, shared a common institutional history, and were brought together to combine their strengths in an increasingly competitive managed health care environment. Penn State’s Hershey Medical Center (HMC) founded in 1963 and included Penn State’s College of Medicine, the University Hospital, and Children’s Hospital. HMC bring with it over 6,000 employees and handled 20,800 inpatients and 356,000 out patients during fiscal year 1995-1996. (Reeves 1999 p. 44). HMC added to our own Geisinger Health System, which served more than 2 million people in Pennsylvania and southern New York. The University hospital system joined our regional health system, which incorporated Geisinger Medical Center, Geisinger Wyoming Valley Medical Center, Maryworth treatment center, the Geisinger Clinic, and the Geisinger Health Plan our 200,000 member HMO. (Reeves 1999 p...
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...culture……………………………………………………………………...5 2.2 Missions, visions and values……………………………………………………………..5 2.3 Data……………………………………………………………………………………....5 Organization Theory In this case merging takes place when the two separate hospitals come together. Here one hospital acquires the other through purchase or agreement. Differentiation is the main reasons that PRMC and BRMC may opt to come together. It helps in reducing risk in the market. Acquisition will enable PRMC to spread its risk through diversification. Another reason is to gain financial upper hand in the market since the hospital is operating at loses. These are mostly done by firms that are almost closing or becoming bankrupt. When firms merge, they enjoy the benefits of tax reduction. Economies of scale are another reason why PRMC and BRMC merged. This involves operation costs which are reduced when two firms merge. Both hospitals benefit in their operations. Merging takes place when two separate entities come together. Here one hospital acquires the other through purchase (Collins & Porras, 1996). Merging helped PRMC to reduce risk in the market. Acquisition enables a company to spread its risk through diversification. Another reason is to gain financial upper hand in the market. This involves operation costs which are reduced when two firms merge. PRMC and BRMC benefit in their operations and boast the large human resource. However this theory is still opposed by some economist. Other benefits include; however...
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...Team Project 1-2 Mergers and consolidation reflect a key trend in health care, and provide an example of the kinds of changes health care organizations may encounter. Health care managers need to understand the issues that can arise as an organization undergoes change in order to navigate these transitions effectively. With information from this week's Learning Resources in mind, review "The Merger of Two Competing Hospitals: A Case Study" on pages 397–403 of Introduction to Health Care Management. As a team, discuss the following questions: * What are some of the key factors that seem to be driving the increase in mergers and consolidations in the marketplace? Which ones appear to be most relevant in this case study? * What issues seem to be most pressing with regard to this merger? * What do you think are the key concerns of various stakeholders in this scenario (e.g., management, employees/physicians, patients, members of the community)? * What challenges are the leadership team facing as they undertake this transition? * What skills and competencies might be needed by 1) management and 2) employees/physicians to help facilitate this change? * What are some of the possible outcomes for this newly formed organization? As you consider these questions, think about the perspective of your assigned "role" in the case study, as well as your own experiences. As indicated in the Team Project Instructions, your team will have the opportunity to collaborate...
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...medicine in as an establishment to take care of our communities and patients. Over the years, hospitals have been the brunt of antitrust litigation. Between 1985 and 1999 hospitals were defendants in 61 percent of 394 medical antitrust disputes that led courts to issue formal opinions (Hammer, Peter, J. and Sage, William, M., 2003). However, these numbers do not support the under published cases, which do not result in a judicial decision. When hospitals are healthcare conglomerates to provide services antitrust views them as just a business. The services provided by hospitals are complex from the services they provide to the technology they use to the human capital necessary to run the operations of the hospital. Unfortunately, antitrust law concentrates on the overall hospitals behavior and not its purpose. Therefore, not-for-profit designation and lifesaving intentions of the hospital consider immaterial to any type of analysis performed by antitrust. Hospitals reserve the right to enter into any joint venture agreement provided each entity is able to achieve its objects autonomous of one another and avoid becoming a dominate player in the market (Hammer and Sage, 2003). For the most part, it will be the market that dictates if the hospital meets the demands and services demanded by the community. The challenge of healthcare antitrust law is not its insignificance or opposition to hospitals or physicians commitments to provide outstanding care, but its incapacity to rationally...
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...Change and Culture Case Study I This paper focuses on the merger of company A and company B. The middle manager of a health care organization has the responsibility of combining the workforces of both companies, and re-structuring the systems and shape of the new organization. The task of making company C, the two organizations combined, is made more difficult due to the fact of prior competitiveness in the health care realm, with employees viewing company B as non-professional and lacking in quality care. Company B, however, has several inpatient and outpatient services that company A does not, validating the merger. So, this paper presents the effects of the merger, how employees are coached to work together, the new systems and shape of the organization, and the theoretical framework of the merger. Merger During the past decade the hospital industry has made reflective organizational changes, including the extensive consolidation of hospital system through merger and the formation hospital systems (Evans & Gertler, 2012). The rules of health care are changing. Growth is not about just getting bigger. It is about developing all of the components needed for coordinated care and reduced costs. Health system reform has various incentives, such as those related to reducing readmission rates, and establishing a liable care organization, but qualifying for them requires closer links to other parts of the medical care chain (Breakthroughs -Hospital merger and acquisition strategies...
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...Leadership and Organizational Success Introduction Leadership has been defined as the process of describing a vision and influencing others to accomplish a mission or assignment (Borkowski, 2009). Being able to adapt and grow is an important component of good leadership because organizations are living entities in the sense that they change and grow over time. This means that leaders have to constantly match the right style of leadership to the present needs of the organization in order to guide it to the next level of development (Laureate Education, Inc., 2009). The merger of BRMC and PRMC called for a particular style of leadership in order to merge the two distinct cultures present at each organization (Buchbinder & Shanks, 2012). The following outline will explore different aspects of leadership and apply those aspects to needs arising from this merger. Distinction between leadership and management Managers • Direct the work of employees and devise systems to monitor employees’ progress toward achieving preset goals • Determine how to achieve preset goals and are responsible for achieving them • Tell employees to accomplish a particular task or objective • Handle activities through planning and budgeting • Achieve their goals by organizing and staffing • Create an organizational structure and sets of jobs for accomplishing the organization’s strategies (Borkowski, 2009, p.172) Leaders • Set direction or mission for the organization • Motivate the organization...
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...Change and Culture Case Study 1 Deardra Woods July 9, 2012 University of Phoenix – HCS 514 Professor Steven Bonell, MBA, MHA Once North Broward Hospital purchased Florida Memorial Hosptial it was necessary to focus on the relationship between the employees once the two facilities were combined. The management of North Broward Hospital District and Florida Memorial Hospital identified several key areas that will be impacted during the merger. As a middle manager at North Broward Hospital District, my job is to ensure that the combined staff will work together without taking on a competitive stance. Taking into consideration the key areas that will be impacted in the merger, new hierarchies and job descriptions will need to be made for many of the employees. This essay will discuss the transition of the employees and the impact the merger will have on the culture of the new combined organization and will address how systems will be developed as the new organization takes shape. Impact of Sale on the Culture of the Organization The culture and working conditions for the employees of both organizations will be impacted during and after the merger. Each organization currently has its own way of doing business. Employees are used to the way their organization currently works. As the two organizations merge employees and management will possibly need to get used to a new set of policies and procedures as well as new expectations and a new order of business...
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...Case Study 13 Analysis Elizabeth Sapp University of North Carolina at Charlotte The situational analysis of Emanuel Medical Center (EMC) reveals a not-for profit independent hospital located in Turlock, California that is encountering financial troubles as it struggles to remain open. Changes in federal regulations such as the implementation of the EMTALA (Emergency Medical Treatment and Active Labor Act) laws and lower reimbursement rates for federally run insurance programs, changes in service area demographics, and the evolution of the services that locally competing hospitals offer have all contributed to five consecutive negative operating margins for EMC. (Harris, Vogt, & Gilinsky, 2004). Strategic Options Strategic issues are those events that affect an organization and its position within its environment. In the case of EMC the President and CEO, Robert Moen will need to discuss the options available to the hospital with other leaders through strategic planning. This is a process of developing steps for an organization to accomplish its mission and vision through strategic strategies. To make this process a success analyzing and understanding the situation is done by performing an external and internal environmental analysis along with refining the organizations’ directional strategies. In the end, EMC has five possible strategic options including, merging the hospital, selling the hospital, closing the ED, closing the hospital, or doing nothing and trying to...
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...Hospital Collaboration and Healthcare Costs Apparently, U.S.A is one of the countries with the highest level of health care expenditure constituting over $ 8000 of the country’s annual per capita income. This health care cost is on the rise and have to be addressed from a distinct health perspective. Hospital merging refers to acquiring of one hospital by another and undertaking its activities either fully or in part to minimize costs and other operation limitations that they face in the American health sector (Ho 2007). Thus, many hospitals merge to boost their market share, acquire more patients with a view of expanding their operations and achieving greater profit margins than those firms that are run separately. Effects of hospital mergers on healthcare costs A number of researches have been conducted on the American health expenditure using a sample of American hospitals from hospitals association in the country. In comparison, independent hospitals were useful as a control sample. These two groups of hospitals gave divergent information that was weighed against national hospital expenditure records. Findings of such studies reveal that merging of hospitals have the potential to cut down on costs of operation in similar to hospitals that operate in isolation but manage their costs effectively (Kaiser Family Foundation 2004). Additionally, very little proceeds accrue from merging of hospitals let alone not increasing influx of patients in merged hospitals. Moreover, hospitals...
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...Change and Culture Case Study 1 Joan Ramos HCS/514 February 4, 2013 Debra Williams Change and Culture Case Study 1 The cost of health care in the United States remains an important concern for American consumers. The challenges for controlling costs and providing a better health care system are various and complex. These challenges, in many cases, are in the realm of the Department of Health and Human Services (HHS) or other federal or state agencies (Department of Justice, 2012). Hospitals continue to team up with other facilities, insurers and for-profit companies, although the cause of the bump in M&A activity varies. While some hospitals cite financial problems, others join forces because of collaboration mandated under the Affordable Care Act and changing reimbursement models, according to Minnesota Public Radio (Caramenico, 2012). Many dynamics in a healthcare organization can dramatically change when a merger occurs; these changes occur on the floor and among staff. The impact of merging two separate entities with different values and performance efforts can have long-term and short-term affects within the new organization. This paper is an effort to identify the impact a merger will have on the culture of the new combined organization, and how to ensure that the combined staff will work together to provide quality care without taking on a competitive stance. Change and Culture: Cultural Impacts on New Organization When two entities merge together, cultural...
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...come at a cost. It does drive up the cost of labor because it’s another cost incurred by the firm and sometimes the employee. Several companies I have worked for in the past have shared the cost of insurance; by doing this the firm does not incur all the costs of health care; the firm also avoids being fined for not providing health care. If the firm does not provide health care and has more than 50 employees the firm will incur of fine of $5,000. Thus, employers are essentially forced to either incur the costs of health care or pass part or all the costs onto the employee, therefore, decreasing the overall amount the employee actually makes. Some employers could use health care benefits as an enticement to keep their labor force strong. Two of the major economic problems health care creates are cost and access. The affordable care act provides health care to everyone thus, driving the overall cost of care up. The affordable care act increases quantity demanded and therefore increases supply. The market for quality health care only increases as demand increases. If less people demanded...
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