Change and Culture Case Study I
September 9, 2013
Change and Culture Case Study I
The following paper will discuss the effects of merging a healthcare organization with a competitor. For the purpose of this paper the companies will be addressed as company A, company B, and company C. The following paper will discuss the merger in detail in regards to restructuring and the effect of the sale on the company as a whole as well as the culture and values of these two companies.
A merger is the combining of two or more corporate entities to create one new organization with one licensure and one provider number for reimbursement purposes (Lielber ...view middle of the document...
Although mergers do not happen every day the total number has begun to rise. With the decline of the U.S. economy and with rising healthcare cost many health care organizations/companies are feeling the pressure and unfortunately many cannot withstand that pressure. With the introduction of the Patient Protection and Affordable Care Act or ACA signed into law by President Barack Obama in March of 2010, many healthcare organizations are unable to handle this new wave of prospective patients. The ACA is supposed to reduce the number of Americans that do not have insurance by about 30 million. This law will ensure that all Americans will have access to affordable and quality health care.
Change is never easy but sometimes it cannot be avoided. It is the duty of the Middle Manager to make sure things run smoothly between the executives and the other employees, essentially acting as the “middle man.” It is now the responsibility of Middle Manager to combine both company A and Company B’s total workforce. However, this will not be easy. Company A and Company B are competitors. The employees, up until now, saw the competition as an enemy that provided a poor quality of care. In addition, Company B has in place several inpatient and outpatient services that company A does not. This had made the job of reshaping and restructuring the new company (company C) more difficult for the Middle Manager. Company B’s location is miles and miles away from Company A which increases the difficulty. Patient care, communication, record keeping, etc. will need to change in order to accommodate the new vision of company C. The Middle Manager will need to make sure that all employees are aware and understand the new changes.
Effect of sale
The culture and the overall working environment for all the employees of both company A and company B will be affected during and after the merger into company C. Currently both companies have their own structures and different ways of doing business such as their policies and procedures. The employees of each company are accustomed to the way business in ran at their respective companies. Once the merger into company C is completed, the employees will have to become acquainted with a new set of policies and procedures. The employees of company A will also need to get used to doing business differently. Company B brought over several inpatient and outpatient services that will be new to company A. The merger has also affected how both companies will be restructured into company C.
With any major over hauling most companies want to avoid as much job loss as possible however that is not always possible. When merging two companies together positions become redundant. In company C the management structure will be realigned. Each Department/function will be moved under a single manager. Unfortunately this will cause some managers to start competing for their jobs because each manager will need to reapply and...