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Rural hospitals' viability and strategic responses
R L Ludke1, L J Westhoff, B M Flood
1Center for Health Services Research, University of Iowa, Iowa City.
Health Progress (Saint Louis, Mo.)
|April 8, 1992
Summary
Rural hospital CEOs reported increased optimism about their institutions
Area of Science:
- Health Services Research
- Rural Health Management
Background:
- Rural hospitals face unique challenges impacting their viability.
- Assessing strategic shifts is crucial for understanding rural healthcare sustainability.
Purpose of the Study:
- To examine chief executive officer (CEO) perceptions of rural hospital viability.
- To analyze strategic behaviors and orientations in rural hospitals between 1987 and 1989.
Main Methods:
- Survey of chief executive officers (CEOs) from various rural hospital ownership types.
- Questionnaire assessing hospital viability, strategic orientation, and organizational role.
Main Results:
- CEOs perceived increased hospital viability from 1987 to 1989.
- A shift in strategic orientation occurred, with many hospitals moving from 'defender' to 'analyzer' or 'reactor' models.
- Hospitals experiencing viability increases often changed their organizational role, commonly from limited to basic care.
Conclusions:
- Despite challenging conditions, rural hospital CEOs exhibited relative optimism about their institutions' future.
- Strategic adaptation, including shifts in orientation and service role, accompanied perceived improvements in viability.
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