The keys to successful diversification: lessons from leading hospital systems.
Hospitals have engaged in a variety of diversification activities over the past five years--many of which have not met expectations. Based on a nationwide study of 570 hospitals belonging to eight leading hospital systems (both investor-owned and not-for-profit), four key factors are identified that differentiate the winners from the losers. These include strategies for working effectively with physicians; learning to combine centralized and decentralized strategic planning approaches; understanding partially related diversification; and effectively applying the experience curve. Putting these lessons to work will increase the probability of a more effectively diversified health care system in the future.
D003625:Data Collection; D006739:Hospital Administration; D006754:Hospital Restructuring / Q000592:standards*; D009096:Multi-Institutional Systems / Q000458:organization & administration*; D009937:Organizational Objectives; D010819:Physician's Role; D010934:Planning Techniques; D013997:Time Factors; D014481:United States