Mount Auburn Hospital
Originally named the Cambridge Hospital, Mount Auburn was founded in 1886, as a charitable medical facility that was funded by donations. As was a hybrid hospital that served the community and also had an affiliation with the Harvard Medical School. This provided an opportunity to train specialists and interns in the residency program across many medical specialties, thereby enabling Mount Auburn to be on the forefront of new medical technology and cutting-edge clinical research.
By the mid 1990's, like many hospitals, it adopted the "fee for service" system under Frank Lynch's regime. Mount Auburn was the leading hospital in the primary health service area with 23% of patient discharges in 1993. However, by 1998 it experienced significant operating losses of $10 million. This was partially due to the merger and acquisition activity of Boston area Hospitals at that time and partially due to the internal tension between the hospital administrators and physicians. Lynch's response to this situation was to eliminate positions and cut costs, which further demoralized the physicians groups to stay at Mount Auburn. Physician groups left the hospital to join the network of competitors, which further caused losses, which lead to Lynch's resignation and paved way to new leadership.
Dr. Andrew Brotman, a former Chairman of Psychiatry at Harvard Medical School took over Mount Auburn as the interim CEO after Lynch. The antagonistic relationship of Lynch had eroded the confidence and trust in hospital leadership, especially with the Physicians. Physicians were relieved by this change; they could relate to him and felt he could understand their problems. They were pleased to have a doctor at the administrative level who could understand them. There was an immediate change in morale. Because of his pedigree and background many individuals naturally assumed that he would transition into the CEO role. However, much to the surprise to a lot of people at Mount Auburn, the CareGroup board introduced Jeanette Clough as the new CEO. Jeanette Clough - Profile
Jeanette graduated from Boston University School of Nursing in 1975 and began her career as a staff nurse at Massachusetts General Hospital (MGH). Her career path included Nursing Manager in 1978 and Staff Development Specialist in 1982 at MGH. She left MGH in 1988 to begin her new position at Waltham Hospital as the Director of Nursing. Waltham gave her a chance to demonstrate her leadership skills. She played a vital role, as COO, in stabilizing the hospital by developing new sources of revenue every year to keep the facility going. She was soon elected as the new chief executive in 1995. In 1998, she chose to apply for CEO position at Mount Auburn, a strategic career move for her. Bolman and Deal's Four Frameworks of Leadership
The next few sections of the case study report present the Clough's leadership skills through the lens of Bolman and Deal's Four Frameworks. Jeannette Clough is one of those few leaders who displays their strength in all four frameworks. No doubt, her leadership was accepted by the entire organization. Structural Framework
Clough's strength in the structural framework is visible in the case through the way she strategically turned the organization towards profitable revenue. For example, when Clough saw that denied insurance claims were significantly high at Mount Auburn, she designed a system where insurance authorizations were obtained prior to the patient's visit. Her vision for the organization was explicit in her welcome speech to the employees. She acknowledged the fact that the health care industry was changing drastically and was prepared to reorganize and restructure the organization to make it 'more' fit in the current era. As a result, she was able to bring down the costs and renegotiate contracts. Because of these successes, Mount Auburn recovered from a $10 million deficit in 1998 and turned it around to...
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