HOUSTON, TEXAS
History of Crawford Healthcare:
Crawford Healthcare has been in the healthcare arena since 1968.
Crawford Healthcare corporate headquarters is located in Franklin, TN, in
the suburb of Brentwood. Crawford Healthcare started with one hospital that
the leadership acquired in Franklin, TN. The corporation now owns 450
acute care hospitals, with total beds of 18,000. Crawford Healthcare has
never had any type of scandal in its 40-year history and has only had one
other corporate president who retired in 1970. Crawford Healthcare is on the
NASDAQ. Crawford Healthcare stock is at an all time high of $65.00 a
share for its common stock. Crawford Healthcare acquires all its hospitals.
The company has never built a new hospital in is 40-year history.
SCENARIO:
Your corporate headquarters (Crawford Healthcare) decided to make
an acquisition offer to Texas Healthcare to acquire Texas Medical Center of
Houston. Texas Medical Center is a 550-bed, level I medical center.
Crawford Healthcare acquired Texas Medical Center for 250 million dollars.
In addition, Crawford Healthcare acquired all outstanding debt of Texas
Medical Center of Houston as part of the acquisition.
Crawford Healthcare agreed as part of the acquisition that all current
employees of Texas Medical Center would be retained. The employees at
Texas Medical Center are upset and angry over the acquisition. Several
employees, for example nurses, housekeeping and others, are thinking about
leaving Texas Medical Center of Houston because of the uncertainty of what
the future holds for them. Several of the nurses have been employed at
Texas Medical Center for over thirty years, with the average number of
years being twenty-two. Five employees in housekeeping have been
employed at Texas Medical for 40-years. Overall, the average number of
years for all employees has been fifteen.
The president of Crawford Healthcare informed one of the CEO’s of
Crawford Healthcare, Caleb Bursey, that he and other employees of
Crawford Healthcare would relocate to Huston, Texas to be the new
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leadership for Texas Medical Center of Houston. The CFO (Corporate
Headquarters) has given the new CEO, Caleb Bursey, a budget
of 600 million dollars for purchasing any new equipment, etc. that will be
needed and 1.2 trillion dollars for salaries, etc. for the first six months of
their fiscal year. Crawford Healthcare fiscal year is from January 1 to
December 31. The new leadership began their new positions on
March 1, 2008. Two of the corporate headquarters leadership assumptions
are, with these types of budgets, the leadership can reestablish Texas
Medical Center of Houston as a competitor in the marketplace and Texas
Medical will become the medical center of choice for the community.
Competitors:
There are seven other hospitals located within 25 miles of Texas
Medical Center of Houston. All seven of these hospitals are level I trauma
centers. Five of the other medical centers have 350-beds. The other two have
550-beds. No scandals have ever occurred at any of these hospitals.
ASSIGNMENT:
1. Rewrite the mission, vision and value statement for the acquired hospital.
2. What is a level I trauma facility? (Hint: The leadership should have an
excellent idea of how to allocate the budgets after understanding and
addressing what a level I trauma facility is and what it needs to have
within the healthcare organization in order to be a level I-trauma facility.)
3. Address, discuss and analyze how the new leadership of Texas Medical
Center of Houston is going to get the employees that are retained under
the acquisition agreement to become motivated and buy-in to the new
mission, vision and values of Crawford Healthcare. (In other words,
what type of rewards, intrinsic, extrinsic, team committees, etc., that the
new leadership may or may not put in place.) (Food for thought: Can all
people within an organization be motivated by the same rewards? Is it not
true that adults who have been loyal to an organization, represented by
years of services, might be more motivated by Ouchi’s Theory Z vs.
Vroom’s Expectancy Theory?)
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4. Discuss each new leader leadership style and how each leadership style
may and/or may not be effective in this type of organizational culture.
5. Explain what new policies that the Human Resource Department is going
to put in place. (Please address “at will” for State of Texas in your
new policies).
6. Address the competencies, to all employees, that each new leader brings
to Texas Medical Center of Houston. (This should be in memo format.
The new leadership is addressing the employees.)
7. What type of protocols (ethics) is the new leadership going to put in
place? (Address in detail)
8. Address in detail the barriers and challenges, internally and externally,
that the new leadership faces, for example organizational culture,
competition, etc.
9. Discuss and analyze the solutions for the new leadership barriers and
challenges.
10. Discuss and analyze the competition and how and why should the
consumers of healthcare in Houston select your organization over the
other seven.
11. Discuss the consumers of healthcare in Houston. (Hint: In other words,
the population of Houston and your target groups, for example,
underinsured, uninsured, aged, pediatrics, etc.)
12. Explain and analyze the consumers of healthcare in Houston and how
these populations may or may not save financial resources for Texas
Medical Center of Houston.
13. Discuss in detail the types of leadership classes that the organization will
establish for other employees, for example, directors, managers, and
charge nurses, etc.
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14. Discuss and analyze what types of benefits and classes that the
organization will establish for other employees, (Hint: Tuition
reimbursement, PTO (paid time off), etc.)
15. Discuss the leadership’s short and long-term strategic plans for Texas
Medical Center of Houston. How are the short and long-term strategic
plans for Texas Medical Center of Houston going to be monitored?
16. Discuss and analyze corporation leadership assumptions regarding Texas
Medical Center of Houston regaining its competitive edge in the
marketplace and becoming the hospital of choice for the community.
How did the leadership arrive at these assumptions?