Mac Arthur Merger

1133 Words5 Pages

In 1916, Caucasian Americans were not prejudice towards African Americans, they developed this behavior towards Jews. Between, 1916 and 1918 alone, 400,000 African Americans migrated from southern to northern states. In the summer of 1916, the Pennsylvania Railroad helped more than 10,000 African Americans move in order to employ them. During this time, Deaconess Medical Center (A) permitted Jewish practitioners from practicing in their facilities. As result, the Jewish Community established and financed Bethel of Israel (BI) Hospital. This paper will illustrate how the acquisition merger of BI and A, with opportunity for growth failed profitability. BI is known for academic research and teaching and A was known for surgical specialties and …show more content…

Furthermore, John Mac Arthur the Dean of Harvard Business School was on the board of Harvard Hospitals and he orchestrated a merger with Brigham and Massachusetts General Hospital called Partners Health System. Mac Arthur convinced others that partnering with other hospitals would increase market shares for the entire hospital system. Mac Arthur, appears to be connected to both entities and this could possibly be a conflict of interest; furthermore, he proceeded with merger, and technical challenges manifested. One of the technical challenge was Mac Arthur failed to conduct research or attempt negotiate a contract with insurance that would have to gain a competitive advantage. Mac Arthur had an excellent strategy; however, he failed to conduct an analysis to support his results that should include a projection revenue growth for the shareholders. One of the adaptive challenges, was Mitch Rabkin, from BI, BI chiefs and leadership team led and were given positions of authority after the merger. As a result, this the Deaconess chiefs internalized the change, and found it difficult to adjust to the adaptive change. Unfortunately, they felt distrust, hostility in work environment, and the skilled physicians resigned. The merger did include another essential technical element which is a scope of both companied organizational charts. There should have been formalized …show more content…

Additionally, the faction is individuals were appointed to be on a healthcare board with no medical background. The board consisted of successful business people that lacked or failed to enforce business processes, marketing and operational knowledge. Another challenge people in leadership positions did not care if the work was performed. However, leaders on the board nor leaders connected to the organizations refused to participate with enforcing employees to follow policies set forth. These companies conducted several mergers and each entity are connected with the board fail to deliver positive results in any capacity. Each merging entity had an it’s an existing CEO, or CFO except BID. As a result, this was an unknown political battle field to begin with, because of the board, and existing leadership not holding one another accountable to ensure the financial growth was being executed. This organization was in desperate need for good leaders. Bob Meltzer chairman of the BID board stepped up to the plate and begin walking around the hospital speaking with administrative and clinical staff in the hospital. Bob’s personality allowed people to open up to him and he decided that he wanted to serve on the steering committee as representative from the Medical School. He did not have enough hanging out and interacting with staff to realize he