The Merger of Two Competing Hospitals
The Merger of Two Competing Hospitals
¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬MEMORANDUM
August 1, 2010
As per your request I have created an action plan to resolve the issues that could affect the efficient merge of PRMC and BRMC. This memo shows how to best resolve leadership, culture adaptation, human resource management and benefits issues.
What specific steps should the board take to create an executive team to manage the newly created organization?
- To follow the merger plan, the transitional executive team including the previous CEO of PRMC and the newly elected 15 member hospital board, should be given interim positions for the next 3 years to effectively facilitate and complete the merger. The team will deal with management changes and employee benefits packages. They will hold these positions until their new titles and job descriptions for the newly consolidated hospital are defined. This executive team should create strategic plan for the merger process and communicate it to the staff of PRMC and BRMC as well as to the public.
- HR department, which will deal with job placement, seniority, compensation etc., is really important as well. The Vice President of the new Human Resources department is Dale Miller, recruited from a Catholic healthcare system. Compensation and benefits specialists will be separate roles, which will work closely with HR. The transitional team will create the initial policies and strategic plan. But as HR fills new management positions, two-way communication becomes extremely important in the consolidated hospital. Lower- and mid-level managers should be involved in the decision making process.
- Bylaws, rules and regulations that reflect joint-decision-making efforts should be followed by the new, consolidated medical staff. Stringent, well-documented standards for keeping physician’s credentials current should be applied to Portsmith Regional Medical Center. Decisions on that matter are made by the newly
¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬MEMORANDUM
August 1, 2010
As per your request I have created an action plan to resolve the issues that could affect the efficient merge of PRMC and BRMC. This memo shows how to best resolve leadership, culture adaptation, human resource management and benefits issues.
What specific steps should the board take to create an executive team to manage the newly created organization?
- To follow the merger plan, the transitional executive team including the previous CEO of PRMC and the newly elected 15 member hospital board, should be given interim positions for the next 3 years to effectively facilitate and complete the merger. The team will deal with management changes and employee benefits packages. They will hold these positions until their new titles and job descriptions for the newly consolidated hospital are defined. This executive team should create strategic plan for the merger process and communicate it to the staff of PRMC and BRMC as well as to the public.
- HR department, which will deal with job placement, seniority, compensation etc., is really important as well. The Vice President of the new Human Resources department is Dale Miller, recruited from a Catholic healthcare system. Compensation and benefits specialists will be separate roles, which will work closely with HR. The transitional team will create the initial policies and strategic plan. But as HR fills new management positions, two-way communication becomes extremely important in the consolidated hospital. Lower- and mid-level managers should be involved in the decision making process.
- Bylaws, rules and regulations that reflect joint-decision-making efforts should be followed by the new, consolidated medical staff. Stringent, well-documented standards for keeping physician’s credentials current should be applied to Portsmith Regional Medical Center. Decisions on that matter are made by the newly