Transformational Change in Healthcare
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 “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 hospitals/healthcare organizations, one large and one small, which made transformational changes and became examples to others.
“Change begins with a common vision, inspired by a transformational leader, capable of championing and communicating their vision to all of the organization stakeholders” (Johnson, 2009, p. 301). Sherri Welch, as reported by “The Crain’s Detroit Business Journal” (2009) describes Gary Valade as a healthcare hero for turning around the Henry Ford Health System in the State of Michigan. His name was a big player associated with the Chrysler Companies as a Chief Financial Officer and executive vice president with more than 36 years experience. Similarly, on the west coast, the Sebastopol California Rotary Club (2008) presented a program commending Laurie Austin as the interim CEO for turning around the small Palm Drive Hospital in western California. The once dying small hospital is now a vital player in the community offering an array of services. Understanding the transformational changes of these two hospitals will offer great insight to transformational leadership and learning.
The problem at Henry Ford Health System was that they were drowning in debt and still not meeting the needs of the people. In 2003, the
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 “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 hospitals/healthcare organizations, one large and one small, which made transformational changes and became examples to others.
“Change begins with a common vision, inspired by a transformational leader, capable of championing and communicating their vision to all of the organization stakeholders” (Johnson, 2009, p. 301). Sherri Welch, as reported by “The Crain’s Detroit Business Journal” (2009) describes Gary Valade as a healthcare hero for turning around the Henry Ford Health System in the State of Michigan. His name was a big player associated with the Chrysler Companies as a Chief Financial Officer and executive vice president with more than 36 years experience. Similarly, on the west coast, the Sebastopol California Rotary Club (2008) presented a program commending Laurie Austin as the interim CEO for turning around the small Palm Drive Hospital in western California. The once dying small hospital is now a vital player in the community offering an array of services. Understanding the transformational changes of these two hospitals will offer great insight to transformational leadership and learning.
The problem at Henry Ford Health System was that they were drowning in debt and still not meeting the needs of the people. In 2003, the
References: Henry Ford Health Systems (2010). Retrieved November 26, 2010, from http://www.henryfordhealth.org/body.cfm?id=37460 Hixon, M. (2008). Turning Around Palm Drive Hospital. Retrieved November 27, 2010, from http://www.sebastopolrotary.org/appleknockers/010408.pdf Johnson, J. A. (2009). Health organizations: Theory, behavior, and development. Sudbury, MA: Jones and Bartlett Publishers. Palm Drive Hospital (2010). Retrieved November 29, 2010, from http://www.palmdrivehospital.com/aboutus.shtml Vento, B. (2010). Early Warning Signs of a Distressed Hospital. Retrieved November 28, 2010, from http://www.intensiveresources.com Welch, S. (2009). Health Care Heroes – Honorable Mention: Gary Valade. Retrieved November 27, 2010, from http://www.crainsdetroit.com