MONTEFIORE MEDICAL CENTER CASE ANALYSIS - 01/31/2013
1- Why does Elaine Brennan need to develop a new strategy now? A great manager will be the one who is able to examine the environment, determine opportunities and threats, plan accordingly, implement the plans and evaluate the results of his planning on frequent basis to add more value to what his/her organization is built to accomplish. Elaine Brennan needs to develop a new strategy now because according to the Systems Look at Healthcare, a merger has happened between two facilities each of which provide a different level of care. Each of these facilities was 4 miles away from each other, and both of these facilities’ staff members were operating in silos. Since Montefiore agreed to operate Einstein’s patient-care facility back in 1963, its scope of coverage increased to about 1.2 million residents, 65% of which are minority populations. Montefiore had 16+ competitors in the Bronx area, a condition that led to lower scores at the national level, together with lower compensation levels for employees, unsatisfied patients, amounting to a budget deficit of about $57 million dollars in 1995. Even with the consolidation of the two health care facilities, still there are certain disadvantages that need to be taken care of. There will be fewer workforces to provide for the desired level of care after downsizing. With that on hand, more responsibilities will be granted at the expense of enjoying the usual authority level granted to staff. One final challenge that will add to the necessity of formulating a new strategy for Montefiore medical center is related to the concept of organizational change and the leadership styles needed to support that organizational change.
Level| Target Parameter| Pressing Matters (Needs)|
D: Environment.| 1- Competition.2- Regulations.3- Demographics.4- Payer Policies.| 1- 16+ other hospitals in the Bronx area.2- Difficult reimbursement potential from payers.| C: Infrastructure.| 1- Infrastructure.2- Leadership.| 1- Separate administrative teams.2- leadership teams adaptation to change.| B: Microsystems.| 1- Teams.2- Tools.3- Logic.| 1- Downsizing.2- More stress and turnover.3- more span of control with less authority.4- Decreased quality.5- Cultural consolidation.| A: Patient.| 1- Coverage.| 1- Provision of services to 1.2 million residents.2- 65% minorities (Hispanics and African Americans).|
2- Does the GRIP strategy meet the needs of this organization? According to the Systems Thinking, Montefiore’s corporate strategy should be most influenced by the four key environmental factors (competition, governmental regulations, demographics, and payer policies), yet the current GRIP business strategy which was formulated by Brennan, is supposed to be specifically addressing the Acute Care Division as a business unit, not the entire organization. On the other hand, the case doesn’t indicate which levels of management participated in the meetings Brennan conducted for planning the new strategy for the Acute Care Division. Moreover, and as we go down the organizational hierarchy, strategic goals should be more constrained by corporate level strategies, more detailed with shorter life spans according to the plans provided, and finally, more action-oriented with more specific goals. Given all of the above, I think that what Brennan managed to create was a GRIP strategy that was tailored for the whole Montefiore organization. As regards whether it met the needs of Montefiore, I think it broadly addressed some unmet environmental needs that are provided in the following table:
Need| Strategy Initiative|
1- Overcome competition from 16+ hospitals in the Bronx area.| Redesigning the new health care services to consist of 2 cores; clinical care centers, and support centers. The clinical care centers...