Situation: Catholic Health System, a five-hospital healthcare-provider network in Western New York, was under significant financial distress in 1998. Shrinking Medicare reimbursements coupled with shorter patient stays and fewer overnight admissions due to new technologies and therapies had put Buffalo, NY-based CHS at a crossroads.

Management at CHS decided to “retask” three hospitals – providing each with a new healthcare focus – and transfer ownership of another. These were not simple solutions. CHS hospitals have long been pillars in Buffalo and its surrounding communities. Their Catholic-directed healthcare mission is centered on community involvement, healing compassion and attention to the underprivileged. Rumors of potential hospital closings or employment upheaval had sparked protest marches and created ongoing anxieties among a number of stakeholder groups.

PR Action: CHS board and management retained Hanser & Associates in 1998 to help plan a communication strategy that would address stakeholder concerns, explain management decisions, and adhere to the needs and doctrine of CHS’ religious sponsors. We provided comprehensive planning and strategic counsel, furnished the framework for news conference and news release executions, developed news editorial and opinion pieces, and provided employee communication recommendations.

Results: The CHS restructuring announcement produced community-wide understanding and acceptance of the change. Employees and their unions responded favorably. The communication plan received approval from all levels of the Catholic administration, including the Vatican. The net result of the management action has been a savings to Catholic Health System of $17 million annually.

Posted: April 2, 2009 at 7:44 am by sarag