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Organizational Structure to Decentralize Decision-Making

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You have been hired as an assistant to a new CEO of an academic medical center. You have been asked to recommend a variety of organization designs for the 300-bed inpatient facility. The academic medical center is fully affiliated with the medical school, which is internationally renowned for its work in cardiovascular diseases, neurosciences, and transplant programs. The CEO's main objectives in the reorganization are to decentralize decision making to physicians and other clinicians, to pave the way for more effective information systems for monitoring quality and cost, and to break down traditional barriers between professional hierarchies and groups. What are your recommendations?

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One of the primary ways by which to decentralize decision-making within this organization, is to allow the departmental heads within each of the departments within the medical center to make the most important decisions as to the daily operating procedures to be utilized by those departments. These ...