Three companies retrench, restructure.
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Corporate restructuring of hospitals as a strategy for survival and continued success is described. Health-care providers' traditional orientation has been toward service and mission; now, profits and new markets in health care must be considered also. To remain competitive, hospitals must be prepared to act rapidly on opportunities. Corporate reorganization, the creation of new corporate entities that perform diversified medical and nonmedical functions, may provide the flexibility needed for quick action. Legal and accounting costs will be incurred by corporate reorganization. Tax issues, staff morale, community support, and effect on hospital managers and board members should be considered. Hospitals can cut costs through vertical integration of existing services; in this system-building strategy, new services can be added to broaden the patient base. Corporate reorganization is more important for diversification--the extension of a hospital's medical and health businesses--than for system building. Guidelines for diversification are offered. Corporate reorganization is a technique that should be considered in an institution's planning process.
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We have written a number of articles and reports in the past year on the threat to hospital security operations posed by such concepts and buzzwords as re-engineering, restructuring, downsizing, teams, and managed care--to name a few. Whatever doubts you may have about motivation behind these terminologies, and whatever skepticism you may have about the results that will be obtained when they are implemented, they remain, for the next few years at any rate, the facts of life for every security executive. For an increasing number of security professionals, this new ballgame represents an opportunity as well as a threat--an opportunity to enhance security's role in the new scheme of things and for security to become, as it has never been in the past, a more integral part of hospital management. In this report, we'll add three more phrases to your lexicon--value-added security, integrated security control, and self-directed work teams. And we'll give you details on how two hospital security directors are using the concepts they represent to their own and their hospital's advantage.
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Industry-wide health sector reforms in the United States, Canada, and Europe have provided a unique opportunity to examine the effects of hospital restructuring on inpatient nursing care and patient outcomes across an array of settings. Seven interdisciplinary research teams--1 each in Alberta, British Columbia, England, Germany, Ontario, Scotland, and the United States--have formed an international consortium whose aim is to study the effects of such restructuring. Each site has enrolled large numbers of hospitals and nurses to explicate the role that organization of nursing care, a target of hospital restructuring, plays in differential patient outcomes. The study seeks to understand more fully the influence of both nurse staffing and the nursing practice environment on patient outcomes. Discussion of the theoretical foundation, study design, and process of developing the study instruments and measures illustrates the process to date, as well as the feasibility of and opportunities inherent in such an international endeavour.
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All state mental health authorities are restructuring the role of their state psychiatric systems as part of the overall system of specialty psychiatric services. These efforts include shifting funds to community programs, changing the hospital from both a short- and long-term facility to one or the other, and giving community programs more administrative and budgetary authority over the hospitals. This paper presents case studies of five such efforts, selected to illustrate the range of change and the mechanisms for achieving it. Inferences are drawn from these studies and directions for research are suggested.
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A major downsizing is under way in the hospital industry. Hospitals are laying off thousands of workers and closing down a variety of services. Facilities cite the usual suspects for taking such drastic action: managed care, reimbursement changes in federal healthcare programs, plummeting inpatient loads and consolidation. This is the first in a two-part series on financial turmoil in the industry.
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Despite its proliferation, we know relatively little about the impact of hospital restructuring to offer new services. This exploratory study examines the relationship between types of services offered and financial performance among separately incorporated subsidiaries of acute care hospitals. We draw data from the subsidiaries of all hospital firms operating in one state (Virginia) that requires reporting by all such firms. Results from multiple regression analyses of 1987 data indicate that units that existed longer, produced health care or related products, or were nonprofit subsidiaries of nonprofit firms tended to be more profitable than the other subsidiaries.
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