Management Lessons From One Hospital's Dramatic Turnaround
strategy+business|Summer 2017

Putting people at the core is the key to major improvements in financial, performance, regulatory, and quality indicators.

Eric J. McNulty, Nathaniel Foote, and Douglas Wilson
Management Lessons From One Hospital's Dramatic Turnaround

Assuming the leadership of a 165-year-old institution that appears to be in long-term decline can be a daunting task — especially if it faces deep-rooted financial challenges, eroding market position, drops in quality, a fading reputation, an aging physical infrastructure, and an influential cadre of veterans satisfied with “good enough.”

This was the challenge Bob Grossman faced when he became the dean and CEO of NYU Langone Medical Center in July 2007. In the 10 years since, however, rather than preside over further decline, Grossman has led the institution, which comprises both NYU School of Medicine and NYU Hospitals, to an impressive comeback.

The dramatic turnaround engineered by Grossman offers lessons for any manager seeking to overcome chronic under performance. Confronting an entrenched, entitled workforce — the tenured faculty in an academic medical center — he and his team succeeded in raising performance standards throughout the enterprise, while simultaneously increasing staff commitment levels. The result has been significant improvements across key financial, performance, regulatory, and quality indicators:

• From an operating loss in 2007 of US$120 million, NYU Langone now earns an operating margin of 10 percent and is investing heavily in infrastructure, equipment, and people. A new building that includes a children’s hospital is under construction. The institution continues to expand its ambulatory care for patients in the greater New York City area. Since 2007, the faculty group practice has grown from 600 to 2,700 physicians at more than 150 locations, and overall revenues have more than tripled.

• NYU Langone now consistently receives five stars for overall performance and is ranked by U.S. News & World Report as one of the 10 best hospitals in America.

Denne historien er fra Summer 2017-utgaven av strategy+business.

Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.

Denne historien er fra Summer 2017-utgaven av strategy+business.

Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.

FLERE HISTORIER FRA STRATEGY+BUSINESSSe alt
Transforming information into insight
strategy+business

Transforming information into insight

Focus on six organizational elements to build a world-class data and insights capability.

time-read
8 mins  |
Winter 2020
THE URGENT NEED FOR SOPHISTICATED LEADERSHIP
strategy+business

THE URGENT NEED FOR SOPHISTICATED LEADERSHIP

The pandemic has highlighted a series of paradoxes inherent to the work of leaders. What comes next will depend on how well leaders face up to them.

time-read
10+ mins  |
Winter 2020
The road to successful change is lined with trade-offs
strategy+business

The road to successful change is lined with trade-offs

Rather than trying to convince people your change initiative is the right one, invite them to talk openly about what it might take to implement it: the good, the bad, and the frustrating.

time-read
10+ mins  |
Winter 2020
Sustaining productivity virtually
strategy+business

Sustaining productivity virtually

Maintaining productivity levels among remote employees is an enduring challenge. Here are five ways to help businesses and employees thrive while people work at home.

time-read
7 mins  |
Winter 2020
FORWARD TO normal
strategy+business

FORWARD TO normal

Entertainment and media companies are building business models that are resilient to the enduring changes in consumer behavior ushered in by COVID-19.

time-read
10+ mins  |
Winter 2020
How leaders can promote racial justice in the workplace
strategy+business

How leaders can promote racial justice in the workplace

Embrace four principles to turn today’s diversity, equity, and inclusion initiatives into sustained progress.

time-read
9 mins  |
Winter 2020
CREATING THE OFFICE OF THE FUTURE
strategy+business

CREATING THE OFFICE OF THE FUTURE

In a remodeled world, it is vital for companies to reinvent ways of working.

time-read
10+ mins  |
Winter 2020
Consumer companies must take leaps, not steps
strategy+business

Consumer companies must take leaps, not steps

As shoppers show how quickly they can adapt to external shocks, retailers will need to radically reconfigure their business models.

time-read
7 mins  |
Winter 2020
Businesses can fast-track innovation to help during a crisis
strategy+business

Businesses can fast-track innovation to help during a crisis

“Unrealistic” timelines can actually work. Here’s how.

time-read
5 mins  |
Winter 2020
Agility and experience management work better together
strategy+business

Agility and experience management work better together

Many companies achieve early wins with separate transformational efforts, then stall. But if combined and enhanced using “return on experience,” or ROX, measures, these two programs can unlock each other’s potential.

time-read
7 mins  |
Winter 2020