For several decades health care has been tied to the economy and with the current downturn we see continued efforts to control and reduce over-head costs. Health care organizations in their effort to become more efficient and address changes in the industry have altered their strategic business plans. Lee & Alexander (1999) researched organizational change in hospitals and their survival, in this paper I hope to discuss their findings and add other examples to validate their conclusions.
Core and Peripheral Changes with Regard to Hospital Re-organization
Found in the organizational structure and studied in hospital re-organization is the core and periphery both are varied systems that relate to the identity of the hospital and it’s
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Core changes are less common than peripheral changes in the organization of hospitals. Using Lee & Alexander’s study 1 percent of the hospitals had core changes compared to 36.6 percent having peripheral changes. The percentages of change clearly identify peripheral changes as the more common organizational changes thus making it the more detrimental of the two. Another limitation should have been added stating that the rates of failure in core changes was not separate nor compared to those of peripheral changes.
Peripheral changes were seen as a type of quick-fix solution to a problem vice development of business strategy and well-planned implementation, this nearly guaranteed their failure. When any organization is in danger of failing, short-term solutions that have the biggest impact are initiated first and sometimes without analysis, planning, or communication. Regardless of the type of change an organization requires to remain successful, they must make sure that the organizational design is aligned with both organizational strategy and strategic plans.
Impact on Organizational Change Decisions for Health Care Organizations The Lee & Alexander (1999) study in general showed that when change occurs organizational characteristics following it are
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
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.
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).
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
Armenakis, A. and Bedeian, A. (1999) Organisational Change-A Review of Theory and Research in the 1990s', Journal of Management 25(3): 293-315.
Although within the experience of dealing with such issues such as many investors trying to start and organization throughout the years, first things are great until many changes occur such as increases in insurance premiums and this causing the facility to lose patients because of it. “Rudolf Moos, Jeanne Schaefer, and Bernice Moos (2007) reports the guiding policies of a healthcare organization can affect the workplace. Compared with healthcare facilities that follow a professional model, those with a bureaucratic model are likely to have more centralized decision-making and formalized jobs, which are associated with a lack of support and autonomy, ambiguous work-related practices and high work demands and managerial control. In contrast,
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.
Health care organizations that choose to convert to an electronic medical record system (EMR) have several advantages; most important it increases patient safety, efficiency, cost-effectiveness and security. Accepting such a transition also presents with its share of challenges like preparing for the required significant time obligation and resources that will make the transition a successful one. Leadership and management must create an atmosphere that will get the buy-in of all stakeholders. Providing information about the process and what methods will be best to make the conversion to an EMR system is an important aspect of the implementation
Process‐driven change seeks to create a context and environment in which employees at all levels of
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.
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 this dynamic business environment, change is inevitable. Changes can be planned, or unintentional: depending on the driving forces behind. The major forces for change can be derived from the nature of the workforce, technology, economic shocks, competition, social trends, and world politics (Robbins & Judge, 2011). In this post the author will explain the Kotter’s eight –step approaches to managing organizational change and discuss how his company handles the planned changes in term of organization reconstruction.
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
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.