kCase studu The Merger of Two Competing Hospitals-Case for Chapters 5, 2, and 12
ID: 420305 • Letter: K
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kCase studu The Merger of Two Competing Hospitals-Case for Chapters 5, 2, and 12 Mary Anne Franklin, Dale Mapes, Audrey McDow, and Karin Mithamo This case highlights the process of merging two fully accredited hospitals, both of which have a full complement of state-of-the-art diagnostic technology, including MRI and CAT scanners, 24-hour physician-staffed emergency care centers, and specialized women's centers. Both of these facilities are located in a community of 60,000 in the southeastern part of Idaho. The success of the merger hinges on the timely resolution of several issues that the executive staff implemented, mutually enhancing solutions in the areas of: (1) leadership, (2) culture adaptation, (3) human resource management, (4) staffing, and (5) benefit issues. Overview Hospital A: Porter Regional Medical Center (PRMC) Located on the east side of town, Porter Regional Medical Center (PRMC) was a for-profit hospital, consisting of 110 hospital beds, 8 of which were reserved for transitional care. PRMC was a privately owned facility. Mountain Health Care (MHC), a large healthcare organization in the Rocky Mountain region, owned the facility. Built in 1990, the facility was designed to efficiently handle patient flow from the emergency room to the pharmacy and to be a point of referral for more complicated patient conditions. PRMC services consisted of general and same-day surgery and full-service rehabilitation and radiology departments. Other services included a kidney dialysis center, on-site retail pharmacy, a regional Red Cross blood bank, 24-hour laboratory, home health, Infusion/Home IV, and a women's center, including obstetrics and numerous other amenities. Other assets owned by PRMC were the adjacent medical office buildings, a day care center, the land on which an assisted living center was located adjacent to the hospital, and the sports medicine complex adjacent to the state university's arena. These assets represented 188,000 square feet of facility space housed on 63 acres. The hospital employed 450 personnel. Last year, the hospital's operating budget was $34 million. However, in the same year, the hospital experienced a $1 million loss, and a projected $500,000 loss was anticipated for the following year. After three years of red ink, PRMC decided to liquidate. Hospital 8: Banner Regional Medical Center (BRMC) and Turner Geriatric Center Built in 1951, Banner Regional Medical Center (BRMC), a county-owned hospital, was located on the west side of town. The hospital structure included 154 inpatient beds and a geriatric healthcare center that consisted of 100-106 beds, 13 transitional care beds, and 7 rehabilitation beds. A medical officeExplanation / Answer
Merger and Acquisitions need detailed SWOT analysis in favor of both the organization’s prevailing strength of manpower. In this case, both the entities being of the public sector domain should more focus on the retaining interest of their own employees.
Both PRMC and BRMC boards should be streamlining down the employee friendly strategies that help to regain the trust of the people who usually be skeptical in a merger kind of a scenario. There takes birth many unanswered questions in an existing employee’s mind regarding his survival and thus resulting in not being accepting towards the change. The basic human nature deals with non acceptance of sudden change.
Thus , the company , merged as one should first and foremost deploy a change management unit which takes into consideration the employee’s compensation and benefit and leave management being frameworked in such a way that none of the entity members feel the slightest loss from what they were already entitled to.
The company’s hypothesis of Vision, that’s a long term aim should be focused at point in time wherein the employees no more feel being segregated or deprived and be soul believers of the fact that the merger only took place in alignment to better days and not to crash what prevailed.
Mission,i.e the immediate goal which should be Learning and development program for the staffs who should be trained in apt manners to be able to make use of the machineries efficiently and be on the same page with a “One Team One Dream” approach.
With learning and development will come the efficacy to bring in better ROI and also have skilled labor without incurring cost of hiring new workforce of skilled labor, which might cost twice as what is available already.
In this was, the board might be able to sign off the effective running of the Healthcare Organization at a better profit and also build a trust relationship amongst them to have a cohesion and thus save attrition.
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