The Challenges of Management in Healthcare, Case Study Example

Introduction

As challenging as managing a 60-bed rural hospital can be, adding an additional 90-bed facility ten miles away to the required responsibilities becomes even more challenging. Mergers and acquisitions are a common occurrence in both the private and not-for-profit sectors, and such a union creates many challenges that need to be overcome quickly. In these situations, it is important to evaluate how to manage, and carefully note how the organizational structure needs to change. Through an evaluative and introspective process, it is important to accomplish a new management style that provides the support and clarification needed in order to meet merger objectives and also provide the necessary support required by hospital employees.

Current organization successes and challenges: my newly merged company can be proud of its progress. In a short period of time, the merger has been formalized, and the management structure has been realigned. Unfortunately, this realignment involved staffing cuts to reduce repetitive functions, and the difficult process of selecting the proper personnel has been accomplished at the management level, including selection of a single Chief Executive Officer. This process has been deemed largely successful and completed in a timely manner.

This process also highlights two of the potential challenges that could face a manager in my current position. An article found on HRM Report (2012) articulates the issue of uncertainty, where there is almost always employee turnover as a result of mergers and acquisitions. The article goes on to highlight the importance of speed and affecting positive change in a timely manner, and employees expect to witness meaningful progress in how the merger is evolving. Another article also discusses a need for speed in making changes, as successful adaptations that consider current market conditions leads to higher profitability and a more successful transition (Maremont, 2000). Other challenges would include the need to have presence at both hospitals, and realignment of staff to the new structure. According to HRM Report (2012), aligning corporate cultures, and establishing common working conditions are two additional considerations.

Roadmap to the new realigned structure: it is fortunate that there are many examples of mergers and acquisitions we can learn from. For example, split management structures are becoming common in other service related fields, such as education. Motivated by a trend away from a traditional not-for-profit structure, more and more institutions are turning toward a more entrepreneurial approach (Hrywna, 2012). To address the myriad of challenges, it is important that proper communication tools are fully utilized to provide information to employees. According to HRM Report (2012), these tools should be diverse, including printed materials, teleconferences, training sessions and an intranet, among other possibilities. Employee surveys should be taken periodically and anonymously in order to gauge staff satisfaction levels and perceptions about the transition. Such a transition will likely lead to new staffing positions and opportunities. In such situations, I believe it would be effective to make sure employees not receiving promotions and/or reassignments receive development plans that chart their future growth in the organization.

Steps/Conclusion: As the chosen manager to lead the joint efforts of two hospitals, much can and should be done quickly. Once staffing realignment decisions are made and clearly communicated, it is equally important to commit the transition to a specific timeframe complete with goals and milestones. As manager, I also need to be careful in how I administer my time, and having a presence at both properties will require splitting time every week to spend time with all staff. Efforts at communication will be joint and consistent in order to reinforce the perception of the two hospitals working as one team. This will include standard meetings where timeframe goals and milestones are carefully reviewed and milestone achievements are confirmed.

A split department management system is challenging logistically, and requires both proper organization and communication. As long as efforts are both effective and consistent, the transition period should smoothly progress until the process is complete.

References

HRM Report. (2012, November). Making Mergers Meaningful. Retrieved from http://www.hrmreport.com/article/Making-mergers-meaningful/

Hrywna, M. (2012, November 11). Mandel center changes split management from   business. The Non-Profit Times. Retrieved from http://www.thenonprofittimes.com/article/detail/mandel-center-changes-split-management-from-business-4957

Maremont, M. (2000, September 8). CMGI will reorganize lines of business, consolidate   funds to bolster confidence. Wall Street Journal. Retrieved from http:// online.wsj.com/article/SB968331868308331749.html