The big news in Boston healthcare last month was the announcement that Tufts and Boston University Medical Centers were calling off their proposed merger. The Boston Globe wrote:
“Although they did not specify why the deal fell apart, the hospitals were apparently unable to overcome differences in culture, mission, and strategies for the future, analysts said. “Culture always trumps strategy,”said Ellen Lutch Bender, president of the consulting firm Bender Strategies LLC.
I don’t know any of the details about the proposed merger, and certainly can’t tell you if the deal made sense. But it also wouldn’t be the first partnership that failed due to perceived incompatibilities in organizational culture. In fact, one of the great healthcare case studies in business school is about the ultimately failed merger of Stanford and UCLA health systems– a marriage that came apart after two years. The cause, according to the Stanford Alumni Magazine?
The venture’s biggest downfall may have been that it never managed to bind the two institutions together with a common culture.
I’ve been thinking a lot about the concept of culture in healthcare. You hear the term used frequently– generally to describe either some sort of social incompatibility between one group and another. Besides mergers, the other time you hear the term used is to explain poor operational performance at healthcare organizations. People in healthcare often finger “culture” as the explanation for a litany of disappointing outcomes, failed initiatives and poor performance.
