Abbott Hospital Case Essay example

1925 Words Mar 6th, 2016 8 Pages
Abbott Hospital Case

Organizational Change Issues

The acquisition and post-acquisition period for Mt. Mercy Hospital/Sister Mary Theresa’s purchase of Abbott Hospital experienced several organizational change issues. Within Dr. Belasen’s corporate communications model “CVFCC,” several quadrants became compromised. During the acquisition period, conflict arose within the realm of Investor Relations and Government Relations. Conflict continued to arise after the acquisition – specifically within the quadrant of Employee Relations.

Part 1:
Government Relations: Sister Mary Theresa (along with other Mt. Mercy administrative members) decided to pursue a “satellite hospital” as part of its long-term strategic plan. MEDICO (which
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These doctors were fearful that the “Holy Roman Empire” would take over the northwest section of town. The public perception of Sister Mary Theresa and Mt. Mercy was clearly going to be a problem in moving forward with the acquisition.

Part 2:
Employee Relations: As could have been projected by the public’s negative perception, Sister Mary Theresa’s style of leadership was not well received by many employees at Abbott Hospital. Despite warnings from Dr. John Coletti (Abbott administrator under MEDICO), Sister Mary Theresa implanted her authoritative managerial style into the new satellite hospital. First, she requested all Abbott staff members to be interviewed by Mt. Mercy personnel. They were given a three-month probationary period (at the end of which permanent appointment could be discussed). Also, both staffs were informed they could be transferred between hospitals at administrative discretion. Sister Mary Theresa stuck to her bureaucratic plan – causing Dr. John Coletti to resign.

The early results: Revenues from Abbott hospital ran about 15-20 percent below projected levels. Revenues from surgery/patient care days declined 62 percent. Employee morale was down and the many regional doctors were beginning to send patients in another direction for hospital care.

Corporate Stakeholder Strategic Communication Analysis

Part 1:
In terms of identity key stakeholders during the acquisition period,

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