As St. Francis-St. George opened its doors in January 1982 as a result of the merger of two former facilities, it faced numerous challenges to its ability to communicate with physicians, staff, and community. The previous hospitals had been sponsored by different congregations , the new facility had 50 fewer aggregate beds, and two sets of management personnel were competing for one set of positions. The communication initiatives taken to surmount these difficulties may prove helpful to other hospitals, for close communication--particularly with medical staffs--is essential in coping with the DRG system. To unsnarl the communications tangle at St. Francis-St. George, a committee was appointed to coordinate planning while also ensuring that each department maintained essential control over its own plans. Regular newsletters were published for hospital staff, physicians, managers, and the community. Monthly breakfasts and informal lunches provided for relaxed give-and-take discussions. In response to a December 1982 survey, many staff physicians, while expressing overall satisfaction with the hospital, also indicated that management and the board of trustees did not seem interested in the medical staff's views, that communication between management and physicians had been inadequate, and that the hospital's administration was more concerned with profits than with patient care.(ABSTRACT TRUNCATED AT 250 WORDS)