Building a Culture of Innovation in a Health-Care Organization

Abstract

Columbus Regional Health (CRH, hereafter), a nonprofit organization in Columbus, Indiana, evolved from a traditional local hospital to an award-winning regional health-care provider through innovation. As CRH began implementing innovation processes, the city of Columbus was hit by a natural disaster that flooded the hospital's flagship facility forcing it to close its operations and relocate its critical patients to other hospitals in the area. As a result of the closure, CRH's leadership faced daunting challenges, including whether or not to continue paying its employees, how to continue to provide care for its patients and the community, and funding the cost of repairs and renovations to CRH facilities estimated at $180 million. The management's response to these challenges and how a culture of innovation emerged from that can teach us several important lessons. Pertinent questions are as follows: (a) How can we evaluate the innovation process undertaken by CRH? and (b) What was the impact of the organization innovation and flood crisis on shaping CRH's culture?