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Corporate reorganization: the last gasp or last clear chance for the tax-exempt, nonprofit hospital?

The current revolution in health care organization and financing, increased competition, and a retrenching of industry from its commitments to expansion of health care benefits challenge the nonprofit hospital's existence as a viable entity. Hospital governing boards and administrators have turned to corporate reorganization in order to maintain their financial position and to continue to serve their communities. This Article examines the not-for-profit concept and the problems facing nonprofit hospitals. It reviews the pros and cons of reorganization and the for-profit/nonprofit controversy. It questions whether the hybridization of the hospital results in a stronger or weaker species and discusses the possible effects of the newly structured entity on the quality and delivery of health care. Finally, the Article suggests that the nonprofit hospital may survive only by a continued commitment to societal and communal values, to service rather than to profit; that this commitment is adequate justificaton for the preservation of the nonprofit system, and its preservation will reinforce and strengthen the concept.

Cost Control

[Experiences and materials on internal sectorization of large psychiatric hospitals].

The city of Bremen is divided into 5 catchment areas ("sectors") for the care of psychiatric patients. Internal sectorization of the mental hospital was introduced by relating certain wards to certain catchment areas. The development of internal sectorization and its impact on the diagnostic and therapeutic work in the hospital as well as on the cooperation with external services is described. Some data on patient flows are given. In addition we report on the results of an inquiry in psychiatric hospitals regarding sectorization and other forms of community oriented psychiatric care in the Federal Republic of Germany. The literature on sectorization as one principle of community psychiatry is overviewed.

Combined Modality Therapy