Abbott Hospital Case
Organizational Change Issues
The acquisition and post-acquisition period for Mt. Mercy Hospital/Sister Mary Theresa’s purchase of Abbott Hospital experienced several organizational change issues. Within Dr. Belasen’s corporate communications model “CVFCC,” several quadrants became compromised. During the acquisition period, conflict arose within the realm of Investor Relations and Government Relations. Conflict continued to arise after the acquisition – specifically within the quadrant of Employee Relations.
Government Relations: Sister Mary Theresa (along with other Mt. Mercy administrative members) decided to pursue a “satellite hospital” as part of its long-term strategic plan. MEDICO (which
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Stakeholders that are key to this case include: * Local community/citizens: The public perception of Mt. Mercy and specifically Sister Mary Theresa was not highly regarded (by some). This includes regional doctors, members of the community and employees of Abbott Hospital. * Media: In order to fix reputation, it would have been important for Mt. Mercy to forge strong connection with local media members. * Religious groups: With Mary Theresa’s ties to the Catholic Church, it would have been important for her to build relationships with local leaders in this specific community. * Employees: Employees are a key component for Mt. Mercy. As shown in the post-acquisition, employee morale is important to success. * Customers: As mentioned above, the local community has some opposition to Mt. Mercy. This can directly contribute to the attitudes by consumers of the hospital. * Regulatory Agencies/Standards Institutions: Approval by specific public agencies was needed for Mt. Mercy to take over Abbott Hospital. * Competition: Memorial Hospital was a major threat and competitor to Mt. Mercy.
Dr. Belasen’s guideline on “messaging orientations” would have been useful for Sister Mary Theresa when developing a strategic communications plan in the post-acquisition period. Instead of molding his four characteristics used to describe types of communications, Sister Mary Theresa was focused mostly on a hierarchical approach,