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Abbott Hospital Case

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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.

Part 1:
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 owned Abbott Hospital) was struggling financially. Sister Mary Theresa (on behalf of Mt. Mercy) offered $18 million to take over Abbott Hospital operations. Transfer of ownership was to be approved by the Project Review Board of the Auston Council of Governments, Northeastern Oklahoma Health Systems Agency and the State of Oklahoma Health Services Agencies. The staff of health systems agency were not convinced this was the correct purchase price. They were concerned with the lack of formal assessment given to evaluate Abbott Hospital’s value. They also questioned the rigid leadership style of Sister Mary Theresa.

Media Relations (Public Perception): The leadership style of Sister Mary Theresa was also questioned by the general public and doctors within the regional community. Many local doctors went “on the record” opposing the acquisition of Abbott Hospital by Mt. Mercy. These doctors believed Sister Mary Theresa to be cold, strict and only working in the interest of Mt. Mercy, the Sisters of the Sacred Heart and, most importantly, the Catholic Church. One of the most outspoken doctors (Dr. Martin Leeham) had approached the city

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