Case Study: the Merger of Two Hospitals

In: Business and Management

Submitted By condrak
Words 1673
Pages 7
Case Study #1

The Merger of Two Competing Hospitals

1. What specific steps should the board take to create an executive team to manage the newly organization?

Appointing a management team that can rightfully represent both institutions needs to be the primary concern of the board in creating a new executive team. It will be important to keep in mind that upper management within Banner Regional Medical Center (BRMC) had recently changed due to the exit of several key members; the new representation should reflect this change. The consolidation agreement should be closely adhered to because it stands as a written and physical agreement between the two hospitals. Close attention to the ramifications within the agreement will be symbolic to the upper management of both parties because it will show the intentions of the new board to integrate the agendas of each. Pat Herman, The previous CEO of Porter Regional Medical Center (PRMC) and the new group of 15 board members should create a time line that will allow for the structure of the consolidated hospital to be established. Interim managers should be appointed in the duration of the time line. This time line will test the management structure and should allow 2-4 years for job descriptions and managerial roles to be identified. The respective staff of each institution should be informed of the time line as well as the outlined details of the strategic merger plan. Because the merger will affect all employees, lower level mangers should have some say who should be a part of the executive team. This will allow for a bigger picture view of the candidates and possibly prevent issues in management from continuing into the new organization. An informative Public relations campaign, introducing the new executive team, is critical to the integration of the greater public into the merger plan. HR will have their hands…...

Similar Documents

Shouldice Hospital Case Study

...1. How successful is Shouldice? Shouldice is successful in a technical sense with its combination of low recurrence rate, low cost and short recovery time. According to www.webmd.com an inguinal hernia repair, which is the primary procedure Shouldice Hospital performs, has an average recurrence rate of 1% to 10%. The recurrence rate for hernia repairs performed at Shouldice is less than 0.5%. The average recovery time for this procedure is 1to 2 weeks for light activity and up to 4 weeks for full recovery. Shouldice patients often walk to the wheelchair from the operating table, are participating in light exercise the same day, and are back to work within 8 to 10 days. Costs for this procedure at other facilities range from $2,000 to $4,000 while Shouldice is able to perform it for under $1,000. Shouldice is also successful in providing a positive experience with nearly 80% of patients being swayed by a positive review from friends and family. 2. How does Shouldice maximize perceived customer value? Shouldice maximizes perceived customer value by providing services of quality higher than the market at a cost lower than the market in an environment that has the feel of a country club rather than a hospital. They have succeeded in instilling such camaraderie in their former patients that tickets to an annual alumni convention sell out every year. Shouldice has succeeded in wrapping their medical care within a social experience usually restricted to......

Words: 909 - Pages: 4

Palm's Hospital Case Study

...Palms Hospital 1. Address the following issues: A) Define the term incremental cash flow. As the project, at least constructively, will be financed in part by debt, should the cash flows include interest expense? Explain. -Incremental cash flow is the additional operating cash flow that an organization obtains from taking on a new project. Yes the cash flow should include interest expense as burrowing money was a direct result of taking on this project. B) The hospital already owns the site for the center, so should any cost be attributed to the land? Explain. -Since the hospital has already paid for the land five years ago, it should now be considered as a sunk cost. The $150,000 payment has already happened and will not affect the current decision for the proposed outpatient surgery center. C) What overhead costs should be included in this analysis? -Only the increase in overhead costs associated with this project should be included in this analysis. Current overhead costs will not change if the project is denied, the only affect to overhead costs will be new costs brought on by the project. In the case of this analysis, the increase overhead costs will consist primarily of housekeeping and building/grounds maintenance. D) How should the cannibalization of inpatient surgeries be handled? -The net loss in hospital revenue based on inpatient surgeries should be considered $500,000 in this analysis due to the savings in expenses as well as......

Words: 1121 - Pages: 5

Case Study of Shouldice Hospital

... CASE DY STUOF SHOULDICE HOSPITAL 2ND JUNE 2014 INTRODUCTION The Shouldice Hospital, located in Thornhil, Ontario is considered a global leader in hernia repair and recovery. The Shouldice Hospital was established in 1945 by Dr. Edward Earle Shouldice.   Major Dr. Edward Earl Shouldice saw many men denied enlistment into the army because they were deemed physically unfit to serve due to the need of hernia surgery.   Dr. Shouldice developed an innovative technique to repair hernias during this World War II era and has been known in the medical world for his superior methods ever since.   Shouldice created a method that included factors such as a local anesthetic, the abnormal nature of the surgical procedure itself, encouraging movement following the surgery, and many other postoperative methods used by his team. Using these factors, Dr. Shouldice developed a surgical technique for repairing hernias that were superior and much more efficient than other methodologies. HISTORY Dr. Edward Earle Shouldice graduated from the University of Toronto in 1916. During World War II, he was called to serve on the Medical Examining Board. Dr. Shouldice, a major in the army, found that many young men willing to serve their country had to be denied enlistment. These men needed surgical treatment to repair their hernias before they could be pronounced physically fit for military training. In 1940, hospital space and......

Words: 458 - Pages: 2

Case Study: the Two Presidents

...PART 1 CASE STUDY – COOPERATING and COMMUNICATING ACROSS CULTURES 1. Problem: Identification and summary of key organizational behavior issues evident in the case. On this case study there are two scenarios/situations that are presented about cooperating and communicating across cultures. The scenario/situation begun when the company headquarters in Philadelphia sent Jim to Stuttgart, Germany to be the team leader for the introduction of a new laser for the eye surgery that will be launch in North America. Although Jim had never worked in Germany, he was selected because of his qualification, experience, speaks fluent German and a wife who is from Germany which makes him culturally prepared. Even though the launching of the new product was a success, there were issues, concerns and behavior that may have failed in the launching of the new product. Not in the order of priority, I have identified the following key organizational behavior issues either in the American or German perspective: * Culture Ready Environment * Leadership and Management style * Communication * Expectation * Motivation * Problem solving * Adaptability 2. Reflection on the identified issues along with recommendations or potential solutions to identified issues. Today, facing tough economic times, many companies are cutting resources, employees, and cost to survive the competition. Yet in spite of cut backs and struggles, the war for talent remain as strong as......

Words: 508 - Pages: 3

Hospital Case Study

...Running Head: HIRING RECOMMENDATIION Abstract This paper explores a case study about the hiring practices of St Vincent’s Hospital and the high turnover rate and the hospital’s hiring practices. This article describes the issues with the recruiting practices and the recommendations of my organization to deter a high turnover rate and better recruiting practices. St Vincent’s Hospital is an 80 bed facility that is ran by a 65 year old sister by the name of Sister Claire. This hospital operates on between 50-60 registered nurses and the hospital has had a turnover rate of about 35% for the last few years. When this hospital originally started operating the turnover rate was only at around 5% and after a five year span the rate jump up to 25%. After carefully going over the analysis report of the hospital recruiting practices there were 273 applicants that only produced 52 qualified applicants that accepted a job offer and after one year 19 of the 52 had ended their employment with the hospital. There were several problems that were brought to my attention after reading this report and the following is my analysis and recommendations on how to adapt a better recruiting effort. One of the biggest problems that applicants did not accept the job offers were lack of timely follow up and negative perception of recruitment process. The recruitment process needs to be reorganized, there needs to be a decisive plan, with specific details on how to go about recruiting......

Words: 949 - Pages: 4

Shouldice Hospital Case Study

...Case 1: Shouldice Hospital Limited Q1: How does shouldice compete? In other words why do patients come to shouldice hospital? Two main reasons drive customers into choosing Shouldice over other competitors/hospitals. The first is quality, and the other is cost. talking about quality of the Shouldice “product” includes both, quality of the operation, and quality of post operation activities and overall services offered by Shouldice. The Shouldice method is a focused, specified operation that deals with Hernias, with a reputation that has been built throughout the years and is still growing; the hospital doesn’t even use advertisement to attract patients, the “word of mouth” way of advertisement has been doing very well for them so far. The superior quality offered by the Shouldice method, gives the patients a motive to operate at Shouldice for what it gives regarding peace of mind, low risk and low recurrence rates. Away from the in-operation excellence in quality, the services that Shouldice hospital offers are more tempting than other hospitals. Patients do not feel that they are in a hospital; they consider it more like a recovery vacation with an excused absence from work without feeling any guilt in that. Moreover, it gives patients the independence and sense of control and preserves patients’ dignity when it comes to the fast recovery after the operation, and when it comes to the fast ambulation process after the operation, where a patient rises up and walks by......

Words: 1513 - Pages: 7

Hubris Case Study Mergers

...HYPOTHESIS The Hubris hypothesis implies that managers seek to acquire firms for their own personal motives and that the pure economic gains to the acquiring firm are not the sole motivation or even the primary motivation in the acquisition. It is argued that the evidence supports the hubris hypothesis as much as it supports other explanations such as taxes, synergy, and inefficient target management. The key element in this series of events is the valuation of an asset (the stock) that already has an observable market price. The pre-existence of an active market in the identical item being valued distinguishes takeover attempts from other types of bids, such as for oil-drilling rights and paintings. These other assets trade infrequently and no two of them are identical. This means that the seller must make his own independent valuation. There is symmetry between the bidder and the seller in the necessity for valuation. In takeover attempts, the target firm shareholder may still conduct a valuation, but it has a lower bound, the current market price. The bidder knows for certain that the shareholder will not sell below that; thus when the valuation turns out to be below the market price, no offer is made Theory predicts that the winning bid is an accurate assessment of value. In takeovers, however, if the initial bid (by the market) wins the auction, we throw away the observation. If all bidders accounted properly for the "winner's curse," there would be no particular bias......

Words: 1758 - Pages: 8

Case Study Sage Two

...diagram doesn't say anything about what functions or activities are going to move in to the cloud. Who at which division of SUH, or at Corporate, will now be using a financial management part of the Cloud to do what jobs, for example? I know the case seems silent on the issue of physical location, but ... we can safely assume that the three companies were not in the same building to start with. Therefore, at the communications infrastructure level... they currently have three separate ISPs they're working with, separate (and probably different) on-site routers, firewalls, etc., different file servers, email systems... the diagram suggests that one firewall will protect them all. Where is it? The results of that is that you're not in position with enough detail to understand or address the resources part of this problem. Do we need more people? Do they need to be doing different things, and need different / new training? New computers, or more of them, or ? Different communications and Internet connectivity? You'll need to take a second look at that, so that you have a better foundation for the Stage 3 part of the Case Study. It's a good introductory presentation of cloud-based services to help SUH, but you needed to go another step or two, to show how different parts of each division would do what out in the cloud. You also needed to show how the resources you require fit this project. You might want to rework this, so that you have a better foundation for the Stage 3......

Words: 1178 - Pages: 5

Case Study Greenhealth Cranbery Merger

...Master of Business Administration (MBA) LONDON METROPOLITAN UNIVERSITY at ESOFT Metro Campus, Sri Lanka Academic Year 2014-15 MN7127ES: Change Management and Consultancy Assessment 1: Individual Report Strategic Change Case Study: GreenHealth-Cranberry1 Merger ABSTARCT This report contains the analysis of the case study of merger process of two UK based parasitical companies, GreenHealth and Cranberry. This report discuss deep inside analysis of two companies during the pre-merger stage and post-merger stage. Balogun and Hope Hailey’s Change Kaleidoscope model, Jonson’s Cultural Web Model and Kotter’s Change Steps has consider for this analysis. Contents 1.0 Introduction: 4 2.0 Case Study Analysis 5 2.1 strategic change context in January 2012, at the start of the merger process 5 2.2 compare and contrast the culture of GreenHealth and Cranberry before the merger (2011) with the new GreenHealth-Cranberry after the merger 8 (2013). 2.3 Critical evaluation of the change process that took place during 2012-13 11 3.0 Conclusion 14 4.0 Reference 15 1. Introduction GreenHealth is a UK based manufacture of vitamins, minerals and herbal supplements based on Reading, England. Company established in 1902 family owned company and currently employs 930 staff. Total revenue in 2011 is £237 million. GreenHealth’s products sold through high street retailers such as Holland and Barrett,......

Words: 3259 - Pages: 14

Case Study Hospital Supplies

...I. PROBLEM City Hospital Supplies, Inc. is faced with the means to develop the Philippine market for the three product lines of Sneider Company for its startup operations. II. SWOT ANALYSIS STRENGTHS • Limited liability of owners The shareholders are not personally liable for corporate acts and debts. This means that in case of liquidation of the company, if the company's assets are insufficient to meet the liability, nothing is required to be contributed by the owners. Only the owners' contribution is at stake rather than their personal assets. • Raising capital is easy as approved by stockholders The company’s form of business organization, corporation, makes possible the raising of large amounts of money from large number of persons. As for City Hospital Supplies, Inc., four other friends of the incorporators would be invited to put in token investments in the firm. • Exclusive distributorship agreement with Sneider Company The company had just been awarded the exclusive distributorship in the Philippines for the Sneider line of hospital supplies by the Regional Marketing Director for Asia of the Sneider Company based in West Germany. An agreement followed after months of negotiations. This is an advantage over other companies in the Philippines. • Good pricing strategy Positioning the Sneider lines about 15-20% lower than the competition would help capture a major share of local market. •......

Words: 1701 - Pages: 7

Hospital Abc Case Study

...the case study, the major issue is the difficulty in attracting new employees. To be more specific, Hospital ABC found that there are still vacancies in critical areas that have yet to be filled up. Even with extended block, the Hospital will have difficulty attracting good employees as there are many other private hospitals competing for the same pool of talent. These hospitals are not afraid to pay above average market rates to secure these employees. Organizations within the healthcare industry are competing for qualified applicants to safeguard future growth. As such, there is a need for organizations to analyze the existing market competition for talent and create the corresponding responses in terms of competitive reward packages. The recruitment policies of the competitors also affect the recruitment function of the organizations. To face the competition, many organizations have to change their recruitment policies according to the policies being followed by the other competitors. The recruitment policy of an organization states the objectives of recruitment and provides a structure for implementation of recruitment program. Of primary importance is to ensure the organization’s recruitment plan is reaching out to the right talent pool in filling open roles. At the same time, this needs to be done in a cost-effective and time-sensitive manner. Effective Recruitment Plan Steps: 1) DETERMINE YOUR RECRUITMENT GOALS: A recruitment plan should be based on hospital......

Words: 5489 - Pages: 22

University Hospital Case Study

...Leneda Bartelle University Hospital Case Study 1. What is the estimate of the marginal cost of the Phase 4 hospital services assuming, as given in the case, that 60 percent of the designated costs are fixed and the remaining costs are variable? The Marginal cost estimate is $ 71,468 2. Assume that the agreed-upon price is $90,000. What is the expected profit on the contract assuming that it brings in 20 new patients? (Assume for now that no new fixed costs would be required.) 3. Now assume that the additional patients will add $200,000 in total to the Center’s fixed costs. Now what is the expected profit on 20 new patients? On 40 new patients? (No new fixed costs are required to support the second group of 20 patients.) 4. What role do the following factors play in the decision as to whether or not to use marginal cost pricing on the new contract? a. Reimbursement amounts paid by current transplant third-party payers. b. The amount of excess capacity in the transplant unit. c. The potential reaction by current payers to a new, lower price contract. 5. What is your final recommendation regarding the base rate for Phase 4 hospital services that should be built into the contract? 6. Should you worry only about the contract’s first year pricing, or should you develop a long-term pricing strategy for TMC? What are some possible features of a long-term pricing strategy? 7. Briefly describe how outlier payments might be handled to ensure......

Words: 318 - Pages: 2

Karolinska Hospital Case Study

...Steps 1-3 – The Problem Identification Stage Step 1 – Review the case and identify the relevant facts Problem situations or cases often include extraneous information or irrelevant ‘stuff’. Therefore, when you are trying to find a solution to a situation or to answer a case question, the first step is to identify the key facts so that you can figure out what is going on before deciding how to answer or solve the problem. In advanced courses, this usually involves extensive research but in an introductory or foundation level course, you will typically only use the information in the case. However, to do well in any case study assignment, it is important to read the case carefully and also to make sure you fully understand what the assignment and/or case questions are asking for. As you review the case, this will help you to identify what you need to pay attention to and what to ignore. That’s what relevance means – eliminating ‘stuff’ and identifying the important facts in a situation. Let us assume that you have just read a case entitled XYZ company and are trying to answer the following question: What are the current challenges facing XYZ company? You must identify and list the key facts which, for the purposes of our example, are those listed below: * The government has recently deregulated the industry to stimulate competition. * Telecommunications advances have led to increasing internet use. * More and more users are comparison shopping on......

Words: 1279 - Pages: 6

Change in Culture Case Study Two

... Change and Culture Case Study Two It has been six months after the organizational merger and the new administration initiated a significant reduction in force. Organizations are making the tough decision about workforce size and structure because of unstable economic times. Reduction in workforce is a way for the organization to cut costs with employee salaries and benefits. There was a decision made to redesign patient care delivery and the first recommendation was that of a universal worker who would deliver many support services. The manager is faced with the challenge of making the redesign work knowing this model often failed with implemented in other organizations. The purpose of this paper is to discuss the process of job redesign and what work processes and performance expectations must be considered once the design is completed. Discussed is the article by Peter Senge and what steps and structures are put in place to make the organization a true learning organization, encouraging workers and managers to adapt and excel despite of the changes. Described is the plan and control the intra-organizational and inter-organizational communications that must occur to implement the job design changes. Management also must ensure individual job satisfaction. Process of Job Redesign Job redesign is the method used to improve the organizations performance. The job redesign focuses on the enhancement of services with a holistic approach. Job......

Words: 1833 - Pages: 8

Shouldice Hospital Case Study

...INTRODUCTION The Shouldice Hospital, located in Thornhil, Ontario is considered a global leader in hernia repair and recovery. The Shouldice Hospital was established in 1945 by Dr. Edward Earle Shouldice. Major Dr. Edward Earl Shouldice saw many men denied enlistment into the army because they were deemed physically unfit to serve due to the need of hernia surgery. Dr. Shouldice developed an innovative technique to repair hernias during this World War II era and has been known in the medical world for his superior methods ever since. Shouldice created a method that included factors such as a local anesthetic, the abnormal nature of the surgical procedure itself, encouraging movement following the surgery, and many other postoperative methods used by his team. Using these factors, Dr. Shouldice developed a surgical technique for repairing hernias that were superior and much more efficient than other methodologies. SWOT ANALYSIS Strengths Very efficient process Specialized Expertise Culture, atmosphere unlike hospitals Reliable and high quality service Competitive Pricing Minimal overhead Capacity utilization Customer satisfaction Quick recovery time for patient Weaknesses Narrow product line Inability to market due to inability to keep up with potential demand Location (Decrease in demand during winter months) Number of locations Age of some key personnel Opportunities New locations, Possible location in United States Create new market segments...

Words: 2168 - Pages: 9