In 1997 University of California, San Francisco (UCSF) merged its two public hospitals with Stanford’s two private hospitals. The two separate entities merged together to create a not-for-profit organization titled UCSF Stanford Health Care. The merger between the health systems at UCSF and Stanford seemed like a good idea due to the similar missions, proximity of institutions, increased financial pressure with cutbacks in Medicare reimbursements followed by a dramatic increase in managed care organizations. The first year UCSF Stanford Health Care produced a profit of $22 million, however three years later the health system had lost a total of $176 million (“UCSF-Stanford Merger,” n.d.). The first part of this paper will address reasons
Participation of all employees in a healthcare organization is needed within a transformational organization. Change is probably never popular, but is necessary for the transformation and restructuring of the healthcare industry. There are several models in the scope of transformational changes and learning organizations. The capacity to change is embraced by organizational transformation and initiatives sustained are representative of learning organizations (Johnson, 2009).
I agree with you hospitals and other healthcare facilities are like any other organization and need to management team who have strong strategic planning skills. Dynamic nature of healthcare system where new innovations are highly desirable, encourage dynamic strategic thinking and healthcare managers need to assemble strategies which can be adjusted as per changing market landscape. In doing so the healthcare managers initiate strategic planning process which focus on relevant and lasting transformations for the future and integrates the organization’s short, medium and long term objectives. As you mentioned, that a heath care facility may fail because of its failure to think strategically while and adapt to latest technologies.
Olden, P. (2011). Management of healthcare organizations: An introduction (Second ed., Vol. 2, p. 329). Chicago, Illionis: Health Administration Press.
changes that have taken place in the company. Devising a strategy within health care can be local
There are many different redesign challenges that organizations must comprehend. By being aware of the potential challenges, leaders can develop a strategic plan to be prepared if
After reviewing and researching the literature with respect to organizational changes, I have come to the conclusion that organizations have always changed. When everything in the world is changing, organization cannot remain islands. They must change to face new challenges. Bolman and Deal (2008) claim organizations have changed about as much as in past few decades as in the preceding century. Bolman and Deal (2008) claim means that the change organizations have experienced in the last decade are almost similar to those they experience in at the end of the twentieth century.
Two highly recognized and equipped hospitals, Porter Regional Medical Center (PRMC) and Banner Regional Medical Center (BRMC), in southeastern Idaho are looked at during their merging process. A three year merging process was set in place to solve five collective issues: “leadership, culture adaption, human resource management, staffing, and benefit issues” (as cited in Buchbinder and Shanks, 2012, p. 406). The main events that sparked merge of these competing hospitals were: PRMC decided to liquidate after experiencing a $1-million-dollar loss and anticipating another $500,000 loss to follow the net year; BRMC’s management concluded that they needed to expand and renovate their outdated facilities in order to sustain the demands of its clientele.
The organization change management readiness guide developed by the state government of California is a guidelines aimed at assessing organization’s readiness for change. The guide is aimed at providing state departments with a practical overview of change management thereby helping them prepare for the challenges and difficulties that typically accompany change processes within organizations (Adams et al., 2014). Even though the guideline is optimized for change processes in the business aspects such as cash management and budgeting, the principles entailed in the guide cut across a plethora of change initiatives. The five pillars of change covered in the guide are applicable to all significant change processes within healthcare organizations. The readiness assessment guide allows for the evaluation of readiness, which informs organizations on the areas they may need to improve on for successful change. After completing the readiness assessment, the changing organization should review its scores and recommendations. The recommendations may then form the basis for readiness planning.
Armenakis, A. and Bedeian, A. (1999) Organisational Change-A Review of Theory and Research in the 1990s', Journal of Management 25(3): 293-315.
organizational change. However, over the last 20 years, where the focus has been on rapid,
Change in business is good, but it 's seldom easy and can often be expensive. Managers are often drawn to change by imagining the possibilities and positive impact it can have on their organization. Before launching an idea, however, spend a little time wrestling with the costs and disadvantages also a part of the change.
A need for growth in any organization to stay a viable entity must occur. Organizational change is inevitable. Just like anything in life, markets and cultures change which require constant attention and preparation. In order to be successful in any market, an organization has to be able transform itself to the needs for the market. CrysTel is no stranger to change. CrysTel is a telecommunication company with over 2500 employees and a gross income of approximately $200 million a year. Products included in there list of services include data cables, wireless solutions, and network development. The product profile is data cables, wireless solutions and network development. Because of the nature of
The model identifies factors such as legislation, markets, and the economy as key factors capable of affecting organization’s effort during change. In the case of Medicaid, as a public hospital, the notable environmental factors that played a key role were the government legislation, as the organizations are highly regulated at the State and Federal levels. Nevertheless, although the regulations surrounding the organizations are well specified, they did not influence the change process, as no regulation was required during the change. Precisely, the change was facilitated by the lack of satisfaction with the enrolment offices, customer’s reactions or the market played an important role in facilitating the
In order to create the organization of the future, like the proverbial phrase goes, the doctor must first ?heals itself?. To be effective and efficient in transforming the terrain of work-life, the field of organization development in healthcare must be strategic and inclined to adaptive learning, agility, ?creative destruction?, developmental