Strategy Formulation and Strategic Planning in Hospitals: Application of an Industrial Model

Article Abstract:

Strategic planning has many applications for hospital administrators. The strategy formulation process is reviewed and explained how it may be adapted in various ways for hospitals. A constraint in implementing the process in hospitals is the perceived social, not-for- profit role of the hospital. Another hindrance to strategic planning in hospitals is their bureaucratic organization around a medical staff. In industry, strategic planning has traditionally thrived in hierarchically structured organizations. Tables list decision making factors hospitals must face in long-range planning without compromising their social roles.

author: Files, L.A.
Business planning, Planning

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Operating characteristics and comparative performance of investor-owned multihospital systems

Article Abstract:

The three largest investor-owned multihospital systems (IOMS) in Florida are compared in terms of operating characteristics, efficiency ratios and operating margins. The systems studied were Hospital Corporation of America, American Medical International Inc (AMI) and Humana Inc. The research showed little difference among the three systems. Prospective payment system constraints from Medicare will affect finances at all three systems. However, the IOMS's have diversified into non-hospital businesses such as insurance, and hospitals will contribute less to total corporate revenues.

author: Sear, Alan M.
Hospitals, Multihospital systems

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Ambulatory Care: Can Hospitals Compete?

Article Abstract:

The historical development of hospital ambulatory care services is reviewed. Competition for ambulatory care is increasing among hospitals and other health care providers. The major incentives for hospitals to emphasize their ambulatory care are for inpatient referrals and for increasing utilization of ancillary and other services. Availability of financing is the most significant constraint on hospitals to develop their ambulatory care services. Organizational structure of most hospitals also prevents expansion of ambulatory care facilities.

author: Williams, S.J.
Ambulatory medical care, Ambulatory care

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subjects list: Management, Hospitals, Hospital administration
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