What sources of power does Reid have in this situation? Can using legitimate power to implement a decision would have a positive effect at Blake Memorial? Detail. What influence tactics might one use if they were in Reid’s position? In what ways might Reid use the ideas of coalitional leadership to help resolve this dilemma? references: The Unhealthy Hospital When Bruce Reid was hired as Blake Memorial Hospital’s new CEO, the mandate had been clear: Improve the quality of care, and set the financial house in order. As Reid struggled to finalize his budget for approval at next week’s board meeting, his attention kept returning to one issue—the future of six off-site clinics. The clinics had been set up six years earlier to provide primary health care to the community’s poorer neighborhoods. Although they provided a valuable service, they also diverted funds away from Blake’s in-house services, many of which were underfunded. Cutting hospital personnel and freezing salaries could affect Blake’s quality of care, which was already slipping. Eliminating the clinics, on the other hand, would save $256,000 without compromising Blake’s internal operations. However, there would be political consequences. Clara Bryant, the recently appointed commissioner of health services, repeatedly insisted that the clinics were an essential service for the poor. Closing the clinics could also jeopardize Blake’s access to city funds. Dr. Winston Lee, chief of surgery, argued forcefully for closing the off-site clinics and having shuttle buses bring patients to the hospital weekly. Dr. Susan Russell, the hospital’s director of clinics, was equally vocal about Blake’s responsibility to the community, and suggested an entirely new way of delivering health care: “A hospital is not a building,” she said, “it’s a service. And wherever the service is needed, that is where the hospital should be.” In Blake’s case, that meant funding more clinics. Russell wanted to create a network of neighborhood-based centers for all the surrounding neighborhoods, poor and middle income. Besides improving health care, the network would act as an inpatient referral system for hospital services. Reid considered the proposal: If a clinic network could tap the paying public and generate more inpatient business, it might be worth looking into. Blake’s rival hospital, located on the affluent side of town, certainly wasn’t doing anything that creative. Reid was concerned, however, that whichever way he decided, he was going to make enemies. Source: Based on Anthony R. Kovner, “The Case of the Unhealthy Hospital,” Harvard Business Review (September–October 1991), pp. 12–25
- What sources of power does Reid have in this situation? Can using legitimate power to implement a decision would have a positive effect at Blake Memorial? Detail.
- What influence tactics might one use if they were in Reid’s position?
- In what ways might Reid use the ideas of coalitional leadership to help resolve this dilemma?
references:
The Unhealthy Hospital
When Bruce Reid was hired as Blake Memorial Hospital’s new CEO, the mandate had been
clear: Improve the quality of care, and set the financial house in order.
As Reid struggled to finalize his budget for approval at next week’s board meeting, his attention
kept returning to one issue—the future of six off-site clinics. The clinics had been set up six
years earlier to provide primary health care to the community’s poorer neighborhoods. Although
they provided a valuable service, they also diverted funds away from Blake’s in-house services,
many of which were underfunded. Cutting hospital personnel and freezing salaries could affect
Blake’s quality of care, which was already slipping. Eliminating the clinics, on the other hand,
would save $256,000 without compromising Blake’s internal operations.
However, there would be political consequences. Clara Bryant, the recently appointed
commissioner of health services, repeatedly insisted that the clinics were an essential service for
the poor. Closing the clinics could also jeopardize Blake’s access to city funds. Dr. Winston Lee,
chief of surgery, argued forcefully for closing the off-site clinics and having shuttle buses bring
patients to the hospital weekly. Dr. Susan Russell, the hospital’s director of clinics, was equally
vocal about Blake’s responsibility to the community, and suggested an entirely new way of
delivering health care: “A hospital is not a building,” she said, “it’s a service. And wherever the
service is needed, that is where the hospital should be.” In Blake’s case, that meant funding more
clinics. Russell wanted to create a network of neighborhood-based centers for all the surrounding
neighborhoods, poor and middle income. Besides improving health care, the network would act
as an inpatient referral system for hospital services. Reid considered the proposal: If a clinic
network could tap the paying public and generate more inpatient business, it might be worth
looking into. Blake’s rival hospital, located on the affluent side of town, certainly wasn’t doing
anything that creative. Reid was concerned, however, that whichever way he decided, he was
going to make enemies.
Source: Based on Anthony R. Kovner, “The Case of the Unhealthy Hospital,” Harvard Business
Review (September–October 1991), pp. 12–25
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