PubMed · 1529438
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R D Federa, T R Miller. 1992. Capital allocation techniques.. https://pubmed.ncbi.nlm.nih.gov/1529438/
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In the broad debate over health care reform, the issue of how to regulate hospital capital spending is being touched on lightly. Many options exist--from incentives built into a national payment mechanism to market-driven plans.
Not all rural hospitals are in a depressed financial situation. Many can and have achieved financial performance levels which match their urban counterparts. Cost control is the single most important management strategy which differentiates the successful from the unsuccessful rural hospital. Labor productivity is much higher in the financially successful rural hospital than in the unsuccessful hospitals. Reduced length of stay is also especially critical in the overall cost containment program.