Transformational Change in Healthcare - 1715 Words

Transformational Changes in Healthcare: Two Case Studies Patrick Chapman MHA 601 Professor Sherrie Lu November 29, 2010 Transformational Changes in Healthcare: Two Case Studies The economic downturn has led healthcare organizations to think big changes. We understand that all organizations experience micro changes in their normal adjustments to operating; however, occasionally a unique climate comes together to force new ways of thinking. This new way of thinking is usually a whole novel vision and an entire new direction which â€Å"transforms† the organization. When successful, these organizations become a learning experience for other organizations that perhaps need to make similar changes. This paper discusses two†¦show more content†¦According to its website, Henry Ford Health System now manages six major hospitals with 102,000 inpatient admissions, over 80,000 surgeries, and 3.1 million patient contacts including outpatient (â€Å"Henry Ford Health Systems,† 2010). Palm Drive Hospital in Sebastopol, California near Santa Rosa opened in 1941 with 15 inpatient beds and later made expansions in 1974 and 1991 to reach the curre nt licensure for 37 beds. The small community governed non-profit hospital is supported by tax revenues and serves a community of about 8,000 people (â€Å"Palm Drive Hospital,† 2010). Both of these hospitals had community leaders who cared about their future and were willing to invest community resources for a transformational change. During Valade’s tenure as Chairman of the Board at Henry Ford Health Systems, the Board of Directors invested over $1 billion dollars in new innovated projects and expansions of their hospitals. â€Å"Despite the poor economy, it maintained its Standard and Poor’s A rating and Moody’s A1 rating, increased its market share by 37 percent since 2005† (Welch, 2009). Dan Smith, a community leader, was the director of strategic planning in the community of Sebastopol, California. He noted that the hospital was on the brink of total collapse being unable to pay its bills. His bank stepped in and guaranteed a loan of $600,000 to the hospital (Hixon, 2008). The issues that surface during the transformation change at Henry Ford Health Systems wereShow MoreRelatedTransformational Changes in Healthcare Organizations1427 Words   |  6 PagesParticipation of all employees in a healthcare organization is needed within a transformational organization. Change is probably never popular, but is necessary for the transformation and restructuring of the healthcare industry. There are several models in the scope of transformational changes and learning organizations. The capacity to change is embraced by organizational transformation and initiatives sustained are representative of learning organizations (Johnson, 2009). The first organizationRead MoreTransformational Leadership And The Quality Of Lateral Communication Within Healthcare932 Words   |  4 Pagesachieved. 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