Ucsf Stanford Healthcare – Why They Merged and Why the Merger Was Unsuccessful

Richard Veller, the new CFO for Union Medical Center, began to change the operations of their management. Richard Veller looked to change UMC to an industrial system, which meant that the hospital would view cases as products. Just like any ordinary business, these products would have cost objects and would require an accounting system. In order to allocate costs appropriately, UMC was required to organize their cases into Diagnosis Related Groups to create a functional management control system. These changes brought certain internal issues into the spotlight. If solutions are not found, the hospital will not be able to implement their plans.

This case study looks at the challenges faced by Matt Hayes, executive director of Riverview Regional Medical Center (RRMC). Previously named as “The Holy Name of Jesus Hospital”, the facility was owned and operated by Catholic nuns. The Hospital Management Associates (HMA) bought the facility in August 1991 and modify the name to Riverview Regional Medical Center. Hospitals that were taken over by HMA upgraded to state-of-the-art facilities that provided high quality medical care. RRMC run numerous private practices throughout the city and shared common medical staff with their chief opponent, Gadsden Regional Medical Center (GRMC). However, the common staff from the Emergency and Radiology department were not shared. Over the past years, RRMC has been facing multiple challenges concerning the different services provided by the facility (Swayne, Duncan, & Ginter, 2013).

From a strategic perspective, in order to address its organizational needs, EMC stands a better chance if anchored to a larger, more financially and structurally sound medical entity through the option of a merger. Benefits would include gaining increased bargaining power, the improved ability to retain its best and brightest, a “longer reach” in attracting quality personnel from all around the state or the country at large and a better position from which to compete for customers.

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.

Ellen Zane had her work cut out for her at Tufts-NEMC. The Tufts University affiliated teaching and research hospital had long been on the decline. It was mired in financial difficulty, was falling behind other teaching and research AMCs, and was not effectively serving its local community. Beginning on the day she accepted her position as CEO, Ellen Zane started on a path of reform. Upon learning that the hospital only had 10 months of cash on hand, she began brainstorming on how to make the hospital financially viable, starting by meeting payroll needs first. She discovered that Tufts-NEMC was being drastically underpaid and began looking for solutions to the problem of reimbursements. One of the more

Understanding the financial analysis of healthcare organizations is strategic to the organization by understanding their stand on the amount of revenue they gain, healthcare assets, and their financial goals. This paper will provide a comparison on the performance of financial analysis of several California Healthcare Organizations such as; Scripps Health, Palomar Health, Sharp Healthcare, and Tri-City Healthcare. The four healthcare organizations will be illustrated with an overview about what the organizations have been doing financially , where they have been growing financially, and what have they accomplished over the past year from examining their financial statement. As the nation’s healthcare model continues to evolve,

The Stanford Health Services and UCSF medical center merger was projected to have a great turnout as it was supposed to be “enhanc[ing] the academic mission[s], strengthen[ing] referrals, and creat[ing] a more cost effective teaching hospital” (Sjoberg, 1999). The two competitors joined forces in hopes that it would alleviate the pressures of the new managed care systems by merging resources and acquiring more bargaining power. Stanford Medicine and UCSF came together at a time when many other academic health centers were looking to improve their negotiating powers with healthcare plans and physician groups. The merger offered hope to UCSF and Stanford by strengthening training programs and offering innovation plans as well as financial support.

In the Harvard Business School case study of Intermountain Health Care (IHC), we learned about the efforts made by IHC to adopt a new strategy for managing health care delivery that is focused on improving care quality while simultaneously saving money. Beginning in 1986 as a series of experiments tying cost outcomes to traditional clinical trials, IHC’s approach to delivering care became known as “Clinical Integration” which “referred to both an organizational structure and a set of tools” (Bohmer, 2002). The organizational structure required a departure from the traditional administrative management model to one that “involved administrative and medical

The debate over non-profit versus for-profit healthcare organization has been ongoing, does one provide better care than the other? Do the operations of for profit perform better than the non-profit organizations? Are the criticisms about for-profit organization validated and is there proof? The goal is to examine those questions as well as offer options to improve the financial and operational performance of non-profit and for-profit organizations criticisms.

Merger of Hospital A and B and its consolidation into PRMC was essential as Hospital A was crippled with losses for 3 previous years and was also forecasting losses in the coming year. Hospital B was struggling with an aging facility. Furthermore, given that both the hospitals were in the same community and therefore essentially serving the same community, they were competing both: for the same patients, as well as, the clinical staff. The merger, allowed the new PRMC to reduce the healthcare costs, address the shortage of healthcare personnel and improve the delivery of healthcare by reducing the duplication of services and providing wide variety of services to the small community of 60,000 in southeastern part of Idaho.

Duke University Children's Hospital was facing a financial crisis in 1996 that required turnaround and transformation in order for the hospital to survive (Spector, 2013). On top of the financial crisis, caused by decreased Medicaid allowances and an increase in capitated reimbursement patients, patient and staff satisfaction had reached an all-time low (Spector, 2013). The hospital's chief medical director, Jon Meliones, understood that the hospital could only do so much to control their financial outcomes and a united front would be needed to bring about effective and impactful change (Spector, 2013).

For the purpose of this discussion, I have chosen to write about my current employer, HCA, INC. HCA is considered to be of the largest for-profit hospital conglomerates in the United States. We currently own and operate a total of 176 acute care hospitals and 79 outpatient surgery centers in the U.S. and 8 hospitals in Europe

Stanford University Hospital is one of the most innovative hospitals on the West Coast. It is run by a progressive University dedicated to reinvestment in healthcare strategies and improving technological foundations within its leading position in the healthcare industry. Currently, it is being driven by goals to improve patient satisfaction and clinical productivity.

At the time of merger, the areas of greatest difference include Control and Create. CHB demonstrated negative characteristics of a firm that is too controlled: habitual perpetuation and ironbound tradition. SFG’s culture included positive Create traits that would benefit CHB to adapt. Being a younger organization, SFG was more adaptive to

Baylor Scott & White Health, formerly Baylor Healthcare Systems and Scott & White Health, respectively, merged in October 2013 to become one of the largest healthcare systems in the United States. With a new-shared vision, mission, and values statement, this paper examines the strengths, weaknesses, opportunities and threats present in light of this new merger. A carefully considered execution plan is imperative to ensure continuity of exemplary healthcare and a seamless merger of two similar cultures. As stated by Joel Allison, CEO of Baylor Scott & White, “of mergers that fail, probably seventy five percent fail because of culture.” The execution plan presented in the following pages will help this new entity avoid the risk of losing the trust of their patients and the communities they serve, while creating a new culture acceptable by all that provide and receive the healthcare services of Baylor Scott & White Health.