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eg case studuy The Merger of Two Competing Hospitals-Case for Chapters 5, 2, and

ID: 420307 • Letter: E

Question

eg case studuy 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 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 experienced a $1 million loss, and a projected $500,000 loss was anticipated for the following year. Afte three years of red ink, PRMC decided to liquidate. Hospital B: 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 office

Explanation / Answer

When two or more entities undergo a merger, it's very important that there is no duplication of services and departments. The company has promised no layoffs in the merged entity, hence complete assessment of job responsibilities and functions needs to be done. They need to evaluate staffing needs very closely based on forecasted volume that shows the performance of both hospitals. Wherever they find job duplication, they need to do job reassignment to avoid layoffs. They also have to focus on programs that are aimed at raising the ratio of Licensed practical nurses and registered nurses.