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Tufts-NEMC attempted to solve these problems by partnering with Lifespan, a Rhode Island provider looking to gain further access to the New England market. The merger failed, however, as the benefits of the merger failed to materialize and there were issues with regulators as well. The merger cost the company talent, customers and social capital in the Massachusetts market. Ellen Zane concluded that the merger was ill-conceived and ill-executed.
As a result of these troubles, Tufts-NEMC exited the 1990s not only in worse position than it had started the decade, but worse off than the already poor position it had been in for most of the decade as well.
3. By 2002-2003, the situation at Tufts-NEMC was dire. The company was losing significant amounts of money, and those losses were escalating. The challenging business conditions had remained, and the company had done little to address them. Worse, the merger created more problems and Tufts-NEMC had failed to extricate itself from the merger either. This left the company a shell of its former self, possibly even without the staff to deal with the problems it faced.
Faced with heavy losses, the company was having difficult with its financing. The state attorney general had stepped into the situation to ensure that Tufts-NEMC could meet its bond covenants. It would be reasonable to expect that securing future financing would be either impossible or difficult. The company was in the process of re-creating the administrative departments that it had lost as a result of the merger. Some cost-saving improvements were on the table that would hopefully bridge much of the losses, but at this point the company is still slated to lose money in 2003 even if all projections materialize at their most positive. Staff reductions are also underway, which is a risky proposition. It brings the company out of its financial difficulties, but reduces operating capabilities. The hospital is also looking to sell some of its real estate. Again, this generates income in the short run but does nothing to solve the hospital's ongoing problems and it hampers the ability of the hospital…[continue]
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"Ellen Zane Leading Change At Tuft NEMC", 05 August 2011, Accessed.11 March. 2014, http://www.paperdue.com/essay/Ellen-Zane-Leading-Change-43777