Hospital closure: management and policy issues

As hospital closures have increased between the years 1980-1987, it has become essential for hospital administrators to be aware of the effects of an increasingly complex and competitive environment on their institutions. The purpose of this paper is to examine variables correlated with risk of closure, and to use these data in a context to suggest a managerial approach that will minimize risk. The open systems perspective, which emphasizes uncertainty as an essential component of the planning environment, is suggested as the optimal managerial approach.