Multiple Chapters: Importance of Change Management in Private Healthcare Organizations

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Change Management in Healthcare Organizations

Summary of argument, Hypothesis

Literature Review/Survey/Requirements

182.2 Development of theories/current status

222.3 Assessing Change Management Models and Frameworks

342.4 Redefining Business Processes Using Change Management

402.5 How Does This Project Fit In With the Literature Review

423.1 Introduction: Hypothesis

494.1 Presentation and Description of Results

664.2 Discussion and interpretation of the results

705.0 Conclusion

725.2 Comparison of aims and objectives with achievements

735.3 Contributions of this Research

746.0 Limitations

Recommendations for Future Research

The Importance of Change Management in Healthcare Organizations: Strengths and Opportunities

Introduction

Healthcare organizations are undergoing a transformational change, driven by both economic realities and increased government regulation and intervention in westernized nations. Because of these market forces, consolidation of healthcare providers and rapid acquisition of healthcare facilities by private healthcare organizations is a certainty. The consolidation of the global healthcare market is forcing the privatization of previously nationalized healthcare organizations that failed to obtain funding and stay relevant to patients' needs. In devising a framework for the efficient integration of public government healthcare sector organizations and private firm from a business process, business management and change management perspective, this literature review integrates transformational leadership theories, concepts, change management theories, and frameworks.

The rate of change in the healthcare industry today in the U.S. specifically is accelerating, often forcing together the cultures of widely divergent companies within weeks, without a framework in place to navigate change management strategies (Swedish, 2009). Change management has several different dimensions, the two most integral to an organizations' performance being business process integration and business process re-engineering to gain greater efficiency from existing operations. Second, overcoming resistance to change in employees most affected by new initiatives including mergers and acquisitions is the most challenging aspect of a healthcare organizational change (Brinkmann, O'Brien, 2010).

1.0 Aims and Objectives

The primary objective of this research effort is to determine how effective for-profit healthcare providers are in integrating public-sector healthcare organizations after acquisition, alliance or merger. The focus of the research is on the management and leadership strategies that have led to the successful integration of public sector healthcare organizations into for-profit healthcare providers. The introduction of this dissertation discussed the economic factors that are contributing to the acquisitions, alliances and mergers between public healthcare providers and privately held, for-profit healthcare organizations. The research completed for this study also is predicated on the assumption that the for-profit healthcare organizations are more adept and capable of staying focused on the patient as a customer. Based on this assumption, it is further believed that the more effective a given leader is in a for-profit healthcare provider, the greater the success rate of acquisitions, alliances and mergers. The intent of this dissertations' research is to ascertain the factors, processes, systems and strategies leader specifically rely on in managing the transition of acquisitions, alliances and mergers between public or government-managed healthcare providers and their private-sector counterparts. Over and above the clear differences in how these organizations function, the focus of the research is on how the use of leadership strategies, styles and approaches keep the patient at the center of the organizational change to ensure quality of care does not diminish during the transition period of an acquisition, alliance or merger.

1.1 Background Information

This is in fact the most important facet of any change management strategy of organizations from public to privately-based operations: the transition must not allow patient care to drop or be degraded in any way. At the very center of this analysis is an assessment of what is at the center of state- or government-managed healthcare providers relative to those that are run for-profit and as a result have greater accountability to shareholders. This dissertation does not suggest that just having a customer-centric mindset on the part of for-profit healthcare providers ensures a high level of patient satisfaction and performance. Rather, it is an assessment of how effective the leadership approaches, strategies and systems are in sustaining this patient-based focus and having it permeate an organization so that its performance is by reflex, not by thorough evaluation and planning. In effect, how well does the leadership style of a for-profit organization drive the necessary change to keep the patient focus first, even in the midst of assimilating a public healthcare provider over time. This is the paradox and problem this research concentrates on and looks to determine the role of leadership consistency and focus over the duration of acquisitions, alliances and mergers between public and private healthcare organizations.

1.1.1 First Issue

Change management strategies have been shown to consistently increase the potential for greater levels of success in the integration of nonprofit or state-run healthcare organizations and those operated for-profit (Drummond-Hay, Bamford, 2009). The intent of this analysis is to evaluate to what extent change management strategies lead to greater levels of success with the integration of acquisitions, alliances and mergers.

1.1.2-Second Issue

To determine if there are financially measurable results of acquisitions, alliances or mergers being successful based on the use of process-based performance improvements. The methodology specifically focuses on Business Process Management (BPM) and Business Process Re-engineering (BPR).

1.1.3 Third Issue

To determine which causal factors support the Change Management Equilibrium Model from a statistically significant level of causality specifically in the area of leadership influencing performance.

The problem of making acquisitions, alliances and mergers more successful between public sector healthcare providers and privately owned ones often emanate from a lack of leadership and change management. When privately held healthcare providers acquire public sector organizations, often the patient's welfare is lost in the transition. The problem of how to successfully manage the transition between public ownership to private is multifaceted with employees often needing greater guidance on how their roles will change, and by what magnitude. Central to the problem is a focus on the transaction, not necessarily on the transition of each employee's role, responsibilities and needs during the transition. The needs employees have for greater insight and information as to their status in the new organization, their responsibilities, required new skill sets, and an overview of the new social structure of work all have a direct impact on the quality of care patients receive as well. Senior management often does not focus on the needs of the employees and their sustaining role in company performance when an alliance, acquisition or merger is in progress, as the transaction becomes all- encompassing in scope (Judge, Douglas, 2009).

When a transaction mindset pervades a company executives' focus and direction, the shift from the more difficult and time-consuming approaches to leadership that rely on social connections and creating new social frameworks diminish over time (Ross, Gray, 2006). These social networks and the connections they provide are what many consider to be the foundation of transformational leadership skill sets (Avolio, Yammarino, 2002). Leaders who are perceived as having a high degree of transformational skills in fact have the skills to create workgroups and social alliances quickly, creating interdependencies and trust in organizations rapidly (Russell-Bennett, Previte, Zainuddin, 2009). Transformational leadership skill sets are those that create an exceptionally high level of trust, which serves to accelerate organizational performance over time. Transformational leaders are those that are sensitive and perceptive to which socially-based strategies are the most effective in bringing groups together while also attaining exceptional results (Russell-Bennett, Previte, Zainuddin, 2009).

In the acquisition or merger of two healthcare organizations that are based on entirely different approaches to doing business (public vs. private ownership) the need for balancing transformational and transactional leadership skills is critical. Transformational leadership, and with it, the ability to create networks of trust throughout the merged organizations, often gets left behind in the midst of the transaction being completed. Instead the focus needs to be on how to best create a leadership strategy or approach that balances both transactional and transformational leadership attributes to create a unified strategy for managing organizational change (Al-Mailam, 2004). This is precisely the motivation for the creation of the proposed Change Management Equilibrium Model, which is discussed later in this dissertation. The focus on creating a balanced approach to managing transactional management strategies with transformational management requirements of organizations being acquired or merged is shown in this model. Further, the proposed model also shows a high level of consistency and focus across both transactional and transformational leadership, predicated on a high level of collaboration that serves to unify both types of leadership styles. The proposed model also concentrates on creating a customer-driven series of processes as the outcome of combining transaction and transformational leadership styles. It is the design intention of the proposed Change Management Equilibrium Model that through the combining of transactional and transformational leadership styles, that the customer (and patient) driven processes critical to sustain the quality of care be sustained throughout the acquisition, alliance or merger time period. Figure 1, Proposed Change Management Equilibrium Model, illustrates the conceptual model.

Figure 1: Proposed Change Management Equilibrium Model

The proposed model is discussed in greater depth in section 4.2 of this dissertation, which… [END OF PREVIEW]

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