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Feasibility analysis of preferred provider organizations
1UCLA School of Nursing.
The Journal of Nursing Administration
|January 1, 1990
Summary
This study introduces a feasibility analysis framework to evaluate hospital diversification into Preferred Provider Organizations (PPOs). It empowers nursing executives to assess PPO strategy success amidst patient competition.
Area of Science:
- Healthcare Management
- Health Services Research
- Business Strategy
Background:
- Hospitals face intense patient competition, prompting strategic diversification.
- Preferred Provider Organizations (PPOs) are a common diversification strategy for hospitals.
- Evaluating the success of PPO diversification requires a structured approach.
Purpose of the Study:
- To present a feasibility analysis framework for hospital diversification into PPOs.
- To provide nursing executives with tools for strategic decision-making.
- To enhance the contribution of nursing leadership in PPO analysis committees.
Main Methods:
- Development of a feasibility analysis framework.
- Application of the framework to assess PPO diversification potential.
- Guidance for nursing executives on utilizing the framework.
Main Results:
- The proposed framework offers a systematic method for evaluating PPO ventures.
- Nursing executives can leverage this framework to contribute effectively to strategic planning.
- The analysis identifies key factors for successful PPO integration.
Conclusions:
- A structured feasibility analysis is crucial for successful hospital PPO diversification.
- Nursing executives play a vital role in assessing the viability of PPO strategies.
- The framework supports informed decision-making in competitive healthcare markets.
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