case studu The Merger of Two Competing Hospitals-Case for Chapters 5, 2, and 12
ID: 420325 • Letter: C
Question
case studu The Merger of Two Competing Hospitals-Case for Chapters 5, 2, and 12 Mary Anne Franklin, Dale Mapes, Audrey McDow, and Karin Mithamo process of merging two fully accredited hospitals, both of which have a full This case highlights the complement of state-of-the-art diagnostic technology, including MRI and CAT scanners, 2 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. 4-hour ff The success of the merger hinges on the timely resolution of several issues that the executive sta 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 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 officeExplanation / Answer
Answer:
Fallout of mergers on personnel:
When merger happens it affects the employee engagement, employee morale negatively if it is handled effectively and this can lead to serious issues with the organizational set up. During any merger or acquisition effort, there are at least two groups of employees involved, often coming from organizations with distinctly different cultures and styles. Learning a new culture can be challenging, but is especially so when employees are faced with uncertainty about what the future may hold and whose job is on the chopping block.
Stress
For every employee, change is often difficult, especially if they were not directly involved in decisions that impact their jobs. During mergers and acquisitions, such situations can lead to stress which can have a negative impact on morale if not handled effectively.
Fear of Job Loss
Merging brings cultural clashes. Rarely do two organizations have the same culture. As these groups get to know each other there will inevitably be conflict and perceived or real losses on both sides, says Pophal. Employees may fear losing their jobs or losing opportunities that they formerly had. This fear can negatively impact productivity and may even result in employees leaving the company to seek jobs elsewhere.
Competitiveness
When employees are concerned about their own job security they are more likely to become competitive with others and this competitiveness can result in conflict--sometimes even violence.
Fallouts of merger on services:
A merger can affect the customers of the involved business entities on several levels, including price of the product or service, the quality of the product or service, the level of satisfaction the customers receives from the company and the options the customer has when conducting business with the company.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.