Management Case Study; the Midwestern Medical Group Journey

Management Case Study; the Midwestern Medical Group Journey




According to Plsek, P. E., & Wilson, T. (2001), management is a collection of ideas setting forth the general rules on how to manage a firm, business or organization addressing how managers and supervisors should relate their knowledge of the enterprise to the achievement of goals and motivation of employees to perform to the highest standard. In the delivery of health services, the following management theories and can be applied as given by The Midwestern Medical Group’s Integration Journey.

Models employed by MMG’s management included: Selling MMG to an outside party, maintain status quo, with MMG as on MBS within the Hospitals & Clinics division, merging MMG and Midwest Health Plan, forming a Midwestern ambulatory company with all ambulatory services across Midwestern managed under one umbrella and selling clinics back to the physicians.

The management theories applicable In this case are:

Merger and Acquisition theories.

According to Jansen (1988), the theory of merger and Acquisition is more relevant to Case studies involving inefficient plants and firms being taken over and efficient companies surviving. In many instances, though, hostile takeover otherwise known as management buyouts are common as smooth merger and Acquisition is typically bound to much resistance. The disagreement arises when the due diligence provides information that hints at the subsequent failure of the two firms. Under the merger and acquisition banner, there are two types of theories that are, disciplinary merger theory and synergistic merger theory.  In the disciplinary approach, merging and acquisition are viewed to be championed by managers who pursue objectives at the expense of profit maximization. In this theory, there is a suggestion that the acquiring (parent) firm merge with the poorly performing ones to improve their performance and realize their full potential.

On the other hand, synergistic mergers theory holds that

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