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1、HarvardBusinessSchool9-696-062Rev.April15,1997DONOTCOPYPartnersHealthCareSystem,Inc.(A)ThefirstweekendinDecember1993foundDr.H.RichardNesson,CEOofBoston,Massachusetts'BrighamandWomen'sHospital(BWH),grapplingwithoneofthemostdifficultdecisionsofhiscareer.Th
2、efutureofspecializedteachinghospitalslikeBWHwasthreatenedbydramaticchangesintheU.S.healthcareenvironment,includingthedevelopmentofgovernmentcostcontainmentprograms,theevolutionofalternativecaredeliveryandpaymentsystems,thecreationoflarge,verticallyintegr
3、atedhealthcarenetworks,pluscompetitionfromcommunityhospitals,anduncertaintyinresearchandtrainingfunding.Atthesametime,BWHÕsprimarymarket,theGreaterBostonarea,1wasfacingsignificantexcesscapacityinhospitalbedswithmorethan52acutecarehospitalsforwhatwasashri
4、nkingmarket.Maintainingacommitmenttoworld-classclinicalservicesandexcellenceinresearchandteaching,whilesignificantlyreducingcoststosurviveinthenewenvironment,wouldrequirefundamentalchangesinBWH'sstrategyandoperations.Overthepastfivemonths,Nessonandagroup
5、ofhiscolleagueshadbeenengagedindiscussionswiththeircounterpartsatMassachusettsGeneralHospital(MGH),BWH'sbiggestcompetitor,aboutapossibleallianceorevenmergerofthetwoinstitutions.JohnMcArthur,chairmanoftheboardoftrusteesatBWH,noted,ÒWhenyoulookedatthenumbe
6、rsoncapacity,itbecameclearthatthismarketcouldnotsupportallofthehospitals.Tosurvivetheshake-out,weneededapartnership,andMGH,beingthebestotherteachinghospitalinBoston,wasthelogicalpartner.ÓCatherineRobbins,CFOofMGH,said,ÒWebothbroughtinvaluableexpertiseand
7、experiencetothenegotiationtable.BWHhadmanyyearsofexperiencewithmanagedcarewhileMGHhadbeeninvolvedinbuildinganintegratednetworkofproviders.ÓYetthedesignofthenetwork,theextentandformofthecollaborationbetweenthetwoinstitutions,andtheirrolesaspartofthenetwor
8、kremainedtobedecided.Thus,thecombinedgroupwastomeetinnearbyBabsonCollegeinearlyDecembertowrestlewiththeseissues.Theirdecisionswouldprofoundlyaffectnotonlyeachhospital'sfuturebutthehealthcareenvironmentinMassachusettsand,gi
