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Downsizing in the hospital system: a restructuring process.

A Baumann1, L O'Brien-Pallas, R Deber

  • 1McMaster University School of Nursing, Waterloo, Ontario.

Healthcare Management Forum
|December 3, 1996
PubMed
Summary
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Hospitals face fiscal challenges, leading to restructuring. This study found varied downsizing strategies in Ontario acute care hospitals, with top-down approaches causing differing perceptions among staff and administrators.

Area of Science:

  • Healthcare Management
  • Hospital Administration
  • Organizational Restructuring

Background:

  • Hospitals are implementing major restructuring to ensure fiscal viability.
  • Downsizing is a common strategy, but its implementation varies significantly.

Purpose of the Study:

  • To examine innovative downsizing strategies in Ontario acute care hospitals.
  • To analyze the perceptions of administrators and employees regarding downsizing processes.

Main Methods:

  • Review of hospital operating plans from 20 acute care facilities in Ontario.
  • Analysis of interview data from hospital administrators and employees.

Main Results:

  • No uniform approach to hospital downsizing was identified.

Related Experiment Videos

  • Downsizing was predominantly a top-down process.
  • Significant differences in perception of downsizing existed between staff and administrators.

    • Conclusions:

    • Current restructuring efforts may benefit from improved strategies for cooperation.
    • Further research is needed to guide future hospital restructuring and downsizing initiatives.