History of Perdue Healthcare:
Perdue Healthcare has been in the healthcare arena since 1968. Perdue
Healthcare corporate headquarters is located in Franklin, TN, in the suburb
of Brentwood. Perdue 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. Perdue 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. Perdue Healthcare is on the
NASDAQ. Perdue Healthcare stock is at an all time high of $65.00 a share
for its common stock. Perdue Healthcare acquires all its hospitals. The
company has never built a new hospital in is 40-year history.
Your corporate headquarters (Perdue Healthcare) decided to make an
acquisition offer to Franklin Healthcare to acquire Austin Medical Center of
Atlanta. Austin Medical Center is a 550-bed, level I medical center. Perdue
Healthcare acquired Austin Medical Center for 250 million dollars. In
addition, Perdue Healthcare acquired all outstanding debt of Austin Medical
Center of Atlanta as part of the acquisition.
Perdue Healthcare agreed as part of the acquisition that all current
employees of Austin Medical Center would be retained. The employees at
Austin Medical Center are upset and angry over the acquisition. Several
employees, for example nurses, housekeeping and others, are thinking about
leaving Austin Medical Center of Atlanta because of the uncertainty of what
the future holds for them. Several of the nurses have been employed at
Austin Medical Center for over thirty years, with the average number of
years being twenty-two. Five employees in housekeeping have been
employed at Austin Medical for 40-years. Overall, the average number of
years for all employees has been fifteen.
The president of Perdue Healthcare informed one of the CEO’s of
Perdue Healthcare, Nicole Beamon, that she and other employees of Perdue
Healthcare would relocate to Atlanta, Georgia to be the new leadership
for Austin Medical Center of Atlanta. The CFO (Corporate Headquarters)
has given the new CEO, Nicole Beamon, 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. Perdue
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 Austin Medical Center of Atlanta as a
competitor in the marketplace and Austin Medical will become the medical
center of choice for the community.
There are seven other hospitals located within 25 miles of Austin
Medical Center of Atlanta. 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.
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 Austin Medical
Center of Atlanta 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 Perdue 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?)
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 Georgia in your
6. Address the competencies, to all employees, that each new leader brings
to Austin Medical Center of Atlanta. (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,
9. Discuss and analyze the solutions for the new leadership barriers and
10. Discuss and analyze the competition and how and why should the
consumers of healthcare in Atlanta select your organization over the
11. Discuss the consumers of healthcare in Atlanta. (Hint: In other words,
the population of Atlanta and your target groups, for example,
underinsured, uninsured, aged, pediatrics, etc.)
12. Explain and analyze the consumers of healthcare in Atlanta and how
these populations may or may not save financial resources for Austin
Medical Center of Atlanta.
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.
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 Austin
Medical Center of Atlanta. How are the short and long-term strategic
plans for Austin Medical Center of Atlanta going to be monitored?
16. Discuss and analyze corporate leadership assumptions regarding Austin
Medical Center of Atlanta regaining its competitive edge in the
marketplace and becoming the hospital of choice for the community.
How did the leadership arrive at these assumptions?