Which option would you take, and why?

Methods Hospital enjoyed a near-monopoly position in its midsize, conservative, Midwest community of 350,000 people. Methods was a tax-exempt, 325-bed tertiary care hospital in a system that historically had been very successful. For the past 75 years, the hospital board had prided itself on 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, Stacy, 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 the hospital’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 Stacy.