The health care environment in the Massachusetts at the time of the Ellen Zane took over the Tufts-NEMC was very tenuous (Zane–Leading, 2006). Boston was a hub of the medical activity and the thought was one of the ideal in the country when it came to the advances in terms of the medicine and caring for the patients (Zane–Leading, 2006). There was more of an issue than just how well the hospitals cared for the patients they saw every day. There was trouble which was brewing underneath all the perceived of being in a position to save lives and protect the patients, and that was something which many of the hospital staffs they were unaware (Zane–Leading, 2006). The only individuals who were in the know were those who were more focused on bottom line and those who were up in the hospital along with other medical facilities in Boston and throughout the state of Massachusetts. The major issue which the hospital was encountering was that they were serving the patients but at the same time losing a lot of money. This was taking place everywhere, and Tufts-NEMC was no exception to the rule to make more money than it was paying out. In any institution including the hospitals they could easily encounter financial problems. This happens when the hospitals costs increases without them getting the payment which they are owned. When the hospitals do not get their debts owned they could encounter financial lose since they end up having more cost than they are making the money. Debts usually came from those who required treatment services but they were unable to pay for them. other times these comes when the hospital does not received money owed from other Medicare, Medicaid as well as private insurance organizations. Those who are not part of the medical institution do not realize the significance of such an issue, and those who are involved they are trying to keep the medical institutions financially afloat since they are struggling with every day issues.
During the 90s Tufts-NEMC has very serious problems. Some of these problems included patients being admitted in the hospital for long, higher overall costs, increase in the debt load, over spending, lack of payments from the insurance along with the other issues (Ethiraj, Gambardella & Helfat, 2018). One of the major issues they encountered was deregulation of the medical sector by the state (Zane–Leading, 2006). Whenever a state chooses to deregulate this meant there would be numerous kinds of mergers as well as acquisitions which are between the hospitals both in the in state as well as out of the state (Ethiraj et al. 2018). Every individual begun to merge with everyone else so as to build large medical corporations and access more capital to enable them work (Zane–Leading, 2006). Looking at this on the surface perspective it seemed to be a good plan, but in the reality most of the hospitals which merged with others or even acquired others were not better than they were previously before the mergers and the acquisition took place (Moseley III, 2017). For the Tufts-NEMC they resisted for awhile, but they later decided to merge.
They got involved with the organization from Rhode Island called Lifespan. At the time it seemed as though Lifespan, they had a much better offer, and there were very serious considerations for the financial elements of what could bring to the Tufts-NEMC. One issue which Tufts-NEMC did not seem to consider or perhaps address properly is that Lifespan was completely out of the state hospital with no ties to the Massachusetts market (Wang, Kung & Byrd, 2018).
When Tufts-NEMC merged with Lifespan, they discovered that they were encountering even more financial difficulty than they had expected (Zane–Leading, 2006). This was not good news for the hospital which had merged since they were failing and they needed some financial assistance so that they could stop it from going under (Ethiraj et al. 2018).
By the year 2002-2003, Tufts-NEMC they were looking on ways of getting out of the merger with Lifespan organization (Ethiraj et al. 2018). They had made a bad move initially, and they had invested too many years in it. This deal could not be undone so easily, however breaking up this deal cost Tufts-NEMC thirty million dollars. The organization also lost hundreds of mullion of dollars in their fiscal year due to the problems associated with Lifespan organization (Zane–Leading, 2006). When the deal ended, the company started to focus on themselves, but that had done a lot of damage and the hospital was losing millions of dollars each month (Ethiraj et al. 2018). The advantage the organization had after getting out of the merger with Lifespan they were previously losing money six million to three million dollars per month (Carnall, 2018). Nevertheless, even though the figure had been significantly been reduced this was still huge money for a million dollar organization with plenty of assets to lose the money (Carnall, 2018). The cost associated to any merger is usually very huge, irrespective of the organization. When everything is integrated it might be hard to take it that has happened since the merger. Sorting all the patient accounts in most of the time can be enormous and it can be time consuming process which the organization wants to dissolve the merger would generally be required to pay (Hornstein, 2015).
Ellen Zane came to the Tufts-NEMC in 2003 and was made the CEO. She had become the first female, who was not trained medical person to ever hold that position at the Tufts-NEMC (Goetsch & Davis, 2014). She had been in the business of saving hospitals as well as other medical institutions for more than thirty years (Goetsch & Davis, 2014). The administration at the Tufts believed in her ability to pull them out of the crises and ensure they could keep their door open and continue to treat the patients in the future (Hornstein, 2015). During the six months she was in charge, she made various things in order to take action and begin making changes. She spent a lot of time on the Beacon Hill. She was able to bring visibility and a very recognizable name in the market (Hornstein, 2015). One of the aspects is that she brought accountability which was a big leadership trait. She brought in consultants who helped in leadership through diagnosing what the issues as well as the root causes were, along with prioritizing them. She held someone accountable to fixing it. She was able to provide unity to the physicians throughout the hospitals (Carnall, 2018). There was separation of the two autonomous physician corporations with faculty.
Zane was able to set to focus on developing her management team and reopening the managed care contracts. In addition to the Schottland and BDC, she could push hard on the expense cutting and efficiency initiatives in order to bring Tufts-NEMC in line with the sector best methods (Zane–Leading, 2006). Moreover , she had sold real estate to Tufts University for 28 million dollars to be able to get the hospital on some solid financial position whilst offering these initiatives time to take hold (Carnall, 2018). Moreover, she was able to establish the Tufts-NEMCs brand in Boston market place, and had rebuilt affiliations and network to reverse on the trends which had previously happened for hospital poaching their physicians (Zane–Leading, 2006).
Strategic plan for six month would first set up a management team which would be responsible to solve on the issues which were affecting the organization. Hiring consultant to help in the leadership and assign roles to people who are accountable in each department.
Building a strategy for the future. This would entail contract negotiations, with the insurers to ensure new rates have been implemented to help the organization raise the capital. Another would be network building. To be able to succeed in any business it is important to have a network of investors, or institutions who would invest in the organization and this would be an effective way of getting funding.
References:
Beeman, A. (2015, March). Walk the Walk but Don’t Talk the Talk: The Strategic Use of Color?Blind Ideology in an Interracial Social Movement Organization. In Sociological Forum (Vol. 30, No. 1, pp. 127-147). Retrieved from: www.academia.edu/download/37090700/socforum_published_article.pdf
Carnall, C. (2018). Managing change. Routledge.
Ethiraj, S. K., Gambardella, A., & Helfat, C. E. (2018). Theory in strategic management. Strategic Management Journal, 39(6), 1529-1529.
Goetsch, D. L., & Davis, S. B. (2014). Quality management for organizational excellence. Upper Saddle River, NJ: pearson.
Hornstein, H. A. (2015). The integration of project management and organizational change management is now a necessity. International Journal of Project Management, 33(2), 291-298.
Moseley III, G. B. (2017). Managing health care business strategy. Jones & Bartlett Learning.
Wang, Y., Kung, L., & Byrd, T. A. (2018). Big data analytics: Understanding its capabilities and potential benefits for healthcare organizations. Technological Forecasting and Social Change, 126, 3-13.
Zane–Leading, E. (2006). Change at Tufts–NEMC. Retrieved from: https://www.wiley.com/legacy/wileychi/ginter/supp/Case_6.pdf
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