Reference no: EM131715287

The situation that Paul Levy inherited at BDIMC was lacking true leadership. The medical industry in the Boston area had become highly competitive and put CareGroup in the tough position of trying to keep up with the competition without a distinguished leader.

By the time the board settled on Levy, affairs at BIDMC had reached the nadir. The hospital was losing $50 million a year. Relations between the administration and medical staff were strained, as were those between management and the board of directors. Employees felt demoralized, having witnessed the rapid decline in their institution’s once-legendary status and the disappointing failure of its past leaders. A critical study was conducted by the Hunter Group, a leading health-care consulting firm. The report, detailing the dire conditions at the hospital and the changes needed to turn things around, had been completed but not yet released. Meanwhile, the state attorney general, who was responsible for overseeing charitable trusts, had put pressure on the board to sell the failing BIDMC to a for-profit institution. (Roberto, 2015)

Your challenge is determine what priorities for the future Paul Levy needs to consider. Begin by discussing the main organizational problems he faces. Propose possible remedies to these problems. Your recovery plan should at a minimum consider structural issues, cultural problems, organizational change complexities, financial realities, and Board of Directors composition.