What conflict management techniques could Jillian have tried earlier?

Methods Hospital enjoyed a near-monopoly position in its mid-sized, conservative, Midwest community of 350,000 people. Methods was a tax-exempt, 325-bed tertiary care hospital in the system that historically had been very successful. For the past 75 years, the hospital board prided itself in having a great relationship with its employees and medical staff.
Every year for more than 25 years, an annual holiday party was held that almost everyone attended. However, two years ago, in the midst of reimbursement reductions, the hospital hired a new CEO—Jillian—who instituted many changes, one of which was to cancel the holiday party.
Almost concurrently, two large physician groups began talking about the need to be entrepreneurial and to create profitable healthcare services to maintain their income. One group was the largest local orthopedic practice in the system, generating 15 percent of Methods’s revenues and 25 percent of its profits. The orthopedists engaged an architect and showed other physicians their drawings of an imaging and surgical center to elicit interest.
One set of drawings was left on a table in the hospital’s doctors’ lounge and was subsequently seen by a hospital employee, who showed it to Jillian.
The other group consisted of the hospital-based emergency department (ED) physicians and pathologists, who began planning a series of walk-in clinics and blood-drawing stations in conjunction with a local pharmacy chain. These plans had been rumored for the past year, but recently a member of the board of trustees commented to Jillian that he had heard from a local pharmacy owner that the pharmacy was getting close to signing a contract with the physicians.
Jillian inherited other problems when she became CEO—one of which was a serious disagreement with the community over reproductive rights. The hospital had quietly allowed contraception services, sterilizations, and selective abortions to be performed at its location for the past 30 years. However, a change in population demographics and politics created a battle over the provision of these services. Although the majority of the community and employees supported the hospital’s stance on offering reproductive procedures, an increasingly vocal minority had been trying to make the hospital eliminate them.