Principles of the well-managed community hospital

Management of a community hospital must relate an exceptionally complicated organization to a dynamic and demanding environment. To do so requires a structure that guides decision processes. The author argues that five principles comprise this structure that is in place among today's successful hospitals. They are: (1) Success is measured by market shares at a satisfactory financial margin and an acceptable level of quality. (2) The business of a hospital is medical care, and doctors must be its allies. (3) Planning and budgeting decisions are the arena where trustees, executives, clinical professionals, and managers have their most frequent and meaningful collaboration. (4) Facts, and therefore information systems, are the key to successful planning and budgeting decisions. (5) Rewards are routine and generous to members of the hospital team who contribute to overall success.