Turnaround of a Multi-Unit Indian Hospital: A Study on Its Interventions

Abstract

For a long time, organizational turnaround was a subject of interest; literature on the financial turnaround of hospitals that faced decline after a major disaster like death due to fire is scarce. An Indian hospital group incurred losses for years after death due to a fire in one of its units and earned an operational surplus for the last few years. This case study explores the strategies for its financial turnaround; hospital documents and interviews with managers provided data for it. The purpose of the study is to investigate the interventions taken by the organization for its financial turnaround. The theoretical framework of the study relied on the turnaround model of Maheshwari (2000), Khandwalla (2001), Chowdhury (2002), Jacobs et al. (2013), and Sylkin et al. (2019). The pragmatism theories advocated by Kahneman and Klein (2009), Ansell and Boin (2019), and Boin and Lodge (2021) were also relied upon.This study contributes to the organizational change literature by highlighting that though the theories of turnaround serve as a foundation, managerial intuition and continuous evaluation are strong driving forces for a financial turnaround.