Strategic planning in hospitals

Title: Strategic planning in hospitals: a review and proposal.

Authors: Bruton, Garry D.; Oviatt, Benjamin M.; Kallas-Bruton,

Citation: Health Care Management Review, Summer 1995 v20 n3 p16(10)

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Abstract: Hospitals have been encouraged to adopt strategic planning

techniques to increase their efficiency. However, there is no

proof that hospitals which have adopted strategic planning are

more efficient than those which have not used the method. To

address these problems, issues surrounding the implementation

of strategic planning in hospitals are presented.

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Full Text COPYRIGHT Aspen Publishers Inc. 1995

Hospitals face increasing levels of financial and organizational

pressures each year. Hospitals are urged to adapt to these pressures via

strategic planning, but the empirical evidence on this technique is

limited. This article addresses these issues.

One way hospitals are encouraged to improve their business posture is

through strategic planning, which business firms associate with better

performance. It is argued that strategic planning will produce similar

benefits for the American hospital system. Over the past 12 years,

hospital journals have devoted special issues to the usefulness,

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t important observation that can be made about these studies is that only three studies investigated the relationship between any performance measure and strategic planning. Ven Eman[20] examines planning and quality of patient care and finds a positive relationship between them. Pitts[26] uses multiple internal measures of performance, such as occupancy rates, personnel per occupied bed, personnel expenses per occupied bed, total expenses per occupied bed, and relative market share. He finds a complex moderated relationship between planning and performance that will be discussed later. Forbes[10] finds that planning could be helpful for hospitals to adapt to strategic change in the organization. But the [TABULAR DATA FOR TABLE 1 OMITTED] study does not connect the presence of planning to accounting measures of performance. Scotti[24] recognizes in his research that he does not examine the relationship between hospital planning and performance, but he argues that without widely accepted measures of performance for hospitals, no effort can be made to measure the relationship between performance and strategic planning. The present authors do not agree with Scotti,[24] however. Cameron and Whetton,[29] in a comp

Category: Medical - S