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Solved by verified expert:Hi,According to the syllabus, your final assignment is to write a at least 3000 word paper on a leadership case in healthcare.Your paper must have the following components:1.) Title/Topic2.) Introduction/Background- Describe the case in detail3.) Methods- Describe how the case was managed and handled in the real world (the leadership methods/theories/models used)- Describe how you would have handled and managed the case if you had been in charge of the case (your approach: leadership methods/theories/models)4.) Results- Describe the results of the case management in the real world- Describe the possible/potential results of managing the case if it would have been done based on your approach5.) Discussion- Compare your possible/potential results with the real world results6.) Conclusion- Describe the lessons learned from this study7.) References- Include the list of the papers, textbooks, websites, and blogs that you have used in your paper based on the “MLA citation style.”- This paper should be done in Microsoft Word.Please let me know if you have any questions on the final assignment.I will upload the care study & with its powerpoint that has more information about it so it helps u.
9781284109436_case_e03x.pdf

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Case Study
Leadership for Health Professionals: Theory, Skills, and Applications
Third Edition
Gerald R. Ledlow
E3.
The position of CEO at this health system was the second turnaround opportunity that I accepted. I had a reputation for
being a turnaround artist for health systems. At the point I arrived, this health system was about $500,000 in the negative
net income column. And if things hadn’t changed, they probably would have ended the fiscal year with $2 million in the
red. So, after my first 2 years as CEO, we were still working to turn this health system in a financially positive direction, even
though we were having a positive net income for each year. However, the national health system with which I was associated
was getting somewhat impatient and asked me to come to Chicago for a meeting.
So I went to Chicago and met with them in a hotel suite. They advised me that they were going to sell the health system. I
certainly was very upset with them. I asked them, “Why did you bring me from my last executive position—which was a very
good position—and not even give me a time schedule with enough time to turn this financial situation around?” I told them
that we were making significant progress toward changing not only our entire financial situation, but also toward gaining
market share in a market that we already led, and I needed another year or two. It was a very good argument, and they agreed
not to sell the health system.
However, they came up with another request. They asked me to develop a strategy to take my main hospital rival out of
operation and to drive them to close down. They said they would give me 2 years to accomplish this directive. I told them
I would not accept this directive, because I did not think that having a strategic goal of shutting down another healthcare
institution was ethically correct. It wasn’t right for their employees, and it wasn’t right for the community or patients who
preferred their health system. Right then and there I told them that I would not accept that directive. I also told them that
if they wanted to fire me they should fire me today because I refused to accept their directive. Interestingly enough, they
decided not to fire me, and they abandoned their strategy to shut down our rival health system.
As it turns out, I was with this health system for 11 years, and during that time, I went through three national system
presidents. Just a few years after this incident, a new national system president was hired, and he also asked me to come to a
national meeting in Chicago. He gave me the same directive—to take my chief rival healthcare competitor out of business.
I was so surprised that I actually laughed! I told the new president, “You are the second national system president who has
asked me to take out my chief health system rival, and I’m going to tell you the same thing I told the last one, which is that
I don’t think it’s ethical. I’m not sure it’s even possible, and I’m not going to use my energy pursuing this dumb strategy.
Therefore, if that’s your expectation for me, then you need to fire me today because I’m not going to accept it. I didn’t accept
it several years ago, and I’m not going to accept it today. What I will accept is the strategic strategy to increase our market
value.” Well, that national system president also backed down, and we never had another discussion about this strategy again.
Content Link:
Ledlow & Stephens, Leadership for Health Professionals: Theory, Skills, and Applications, 3rd Edition, Jones & Bartlett Learning,
2017
Chapter 6: Leadership Competence
Chapter 10: Ethics in Health Leadership
Copyright © 2018 by Jones & Bartlett Learning, LLC, an Ascend Learning Company
2   ❚ Case Study
Name:
Date:
Section:
E3. Case Study Questions
1. If you were the CEO, would you have attempted to take your chief rival out of operation?
2. What professional and ethical questions would you have if you were to implement such a strategy?
3. What would be the ramifications for the community if you were successful in executing such a strategy?
Copyright © 2018 by Jones & Bartlett Learning, LLC, an Ascend Learning Company
Case Study E3
Kayla Paepke
About Dr. James H. Stephens
❖Credentials
❖Dr. Stephens received a Bachelors of Science and a Master in Healthcare
Administration at Indiana University between 1972- 1974
❖DHA at Central Michigan University in 2006
❖Senior executive positions for 25 years
❖18 years at president
❖CEO level at multiple health systems and medical centers
❖Personal Leadership styles
❖Servant- leader- Thinking of serving and pleasing others;
❖Transformational Leader- Building relationships and trust to have healthy and
successful work environment
❖Contingency Leader- changing and selecting leaders with styles that fit the
particular situation
Introduction to case
❖ Dr. Stephens was president and CEO for 11 years at a healthcare system in a
large metropolitan area in the Midwest
❖ Large system: two hospitals, ambulatory facilities, nursing home, cancer and
surgery center, as well as urgent care centers and 40 employed physician
group practices
❖ The system had 3,000 employees and was part of a $6 billion dollar industry
California to Maryland
❖Dr. Stephen, with a good reputation in turning around health systems, arrived
at a facility that was negative $500,000 in net income.
❖In 2 years he turned it around with positive income, however financially the
health system still needed improvement.
❖Dr. Stephen was invited to a meeting Chicago with the national health system
President.
❖Dr. Stephen was informed that the system is going to sell
❖Dr. Stephen responded by saying that
❖He made a good argument and the health system agreed not to sell.
❖They came up with a request and gave Dr. Stephen 2 years to develop a strategy to
take the main hospital rival out of operation and to drive them to close.
❖Dr. Stephen told them he would not accept the directive because the goal was not
ethically correct. It wasn’t right for the community.
❖ They decided not to fire Dr. Stephen and discontinue the request
❖11 years later, Dr. Stephen still at the same health system.
❖A new national system was hired and asked the same request in a Chicago
meeting
❖Dr. Stephen, “I’m going to tell you the same thing I told the last one, which is that I
don’t think its ethical. I’m not sure it’s even possible, and I’m not going to use my
energy pursuing this dumb strategy.”
❖The president also backed down and there has not been anymore discussion
about this plan
Art vs Science
❖ Art-
timing and tempo, power and intuition
❖Dr. Stephen knew his power as a CEO
and had the leadership skills to take a
risk and stand up to the health systems
president.
❖He had the intuition to turn the system
around
❖The timing of the response. He did not
wait to think about the request.
❖ Science- budgeting, developing systems and
cost control
❖ Dr. Stephen for years showed his
budgeting skills by turning around
healthcare systems that would of
otherwise failed by turning negative to
positive net income.
❖ Dealing with cost control is important
to organizations that are struggling and
Dr. Stephens developed systems and
skills in this case to make it happen in 2
years.
Course Concepts and
Course Applications
Manager/ Leader relationships
❖ The health systems President and Dr. Stephen (CEO) each have skills to be a leader however:
❖The President lacked leadership- no predetermined vision, strategies, goal or values to
guide Dr. Stephen to take managerial action
❖He was given no standard guidelines or system ideas
❖Leaders are suppose to be proactive
❖Without this relationship and dynamic between leaders and managers, the system will not
be successful
McGregor Theory X and Y
❖ Dr. Stephen
❖X leader
❖He sees the president as lazy and uncooperative
because in this situation the president failed to be
proactive and be a leader
❖ The President
❖ Y leader
❖ The president sees potential in Dr.
Stephens
❖ He treats people as more motivated
individuals, self- controlled and who seek
responsibility.
❖ Therefore, he could of felt the need not to
set a realistic vision or goal
University of Michigan Leadership
Studies
❖Two Classifications (employee orientated or production orientated)
❖The president lacked an employee relationship with Dr. Stephen. If the two
had more communication in the work environment Dr. Stephen would
know that the president had doubts and wanted to sell the health system
prior to the meeting

Highly productive leaders spend time planning and revaluating goals and
vision.
Fieldler’s Contingency Model
❖ Leader-
member relations- trust
❖In this case, Dr. Stephen doesn’t seem to have any respect for the
president. The quality of the relationship is poor because Dr. Stephen
didn’t want to communicate his concerns fully and show leadership by
guiding the president to a realistic goal and vision for the health system
moving forward.
❖ Task
Structure- influence
❖The president did not specify a specific task to how Dr. Stephen was
suppose to shut down the rival health system. No structure and no actions
to be taken.
❖ Position
Power
❖Dr. Stephen must of felt that the president didn’t have much power over
him because of the way he responded
Hersey and Blanchard’s Situational
Leadership Theory

Telling/ directing
 Dr. Stephen is a highly mature CEO which makes the president
provide little to no direction or encouragement.
 The president knows that Dr. Stephen is capable because of his
experience and hard work

Competence/ Commitment
 Dr. Stephen has many years of experience and skills in healthcare
administration and he is very committed to his position because in
2 years he improved the system from negative income to positive
income
 The president leadership style is S4 delegating
What I would have done differently

The president should have made the vision more clear. Made some
suggestions or given some examples of actions that could be taken to prevent
the health system being sold.

Clarify and look into a specific goal to better the health system, taking down
the rival hospital is not specific enough in this case.

Dr. Stephen knew his skills as a leader and with this past experience and
knowledge he didn’t want to be working with a health system that had this
goal in mind.

In the situation I don’t think he overreacted but he needed to be clear that
he would not move forward with the request

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