Case 5 Essay

13634 Words Feb 8th, 2014 55 Pages
511

CASE

Can This Relationship Be Saved? The Midwestern Medical Group’s Integration Journey
Introduction

5

On a snowy January evening, the Midwestern Medical Group (MMG) management team held a retirement party for Judith Olsen, MMG president. During the evening, Olsen reflected back on the years she had worked for MMG with mixed feelings about her experience. Over the course of their eight-year integration
This case was written by Rhonda Engleman and Jisun Yu under the supervision of Professor Andrew H. Van de Ven of the Carlson School of Management at the University of Minnesota. We also appreciate the editorial assistance of Julie Trupke and useful comments of Gyewan Moon and Margaret Schomaker. We gratefully acknowledge Stuart
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1994 1994 1994 1995–1996 July 1997 Fall 1998 February 1999 Event Health Systems Corporation and Midwest Health Plan merged to become Midwestern Health System (Midwestern) Midwestern established three divisions – Delivery Services, Professional Services, and Health Plan Midwestern established the Midwestern Medical Group (MMG), with 20 primary care clinics MMG expanded by acquiring 30 additional primary care clinics Patrick, the original MMG president, was promoted to System vice president of Clinical Services, and Erickson was appointed the new MMG president MMG decided to hire an ophthalmologist to expand clinic services; Midwestern protested decision; MMG ordered to cancel hiring negotiations Johanson, Midwestern CEO, announced a new organizational structure, moving from three divisions to two, the Hospitals & Clinics division and the Health Plan division; the new divisions were charged to select and organize around market business segments (MBSs), focusing on specific customer groups to be determined by the divisions MMG decided to hire a spine surgeon; Midwestern hospital protested decision; MMG ordered to cancel hiring negotiations Hospital & Clinics division selected six market business segments – three metropolitan hospitals, regional hospitals, MMG, and home care Johanson commissioned a benchmarking study to compare MMG with benchmark medical groups; MMG compared favorably to benchmark group performance standards MMG decided to hire a general surgeon; Midwestern

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