PEDIATRICS Vol. 95 No. 5 May 1995, pp. 656
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MANAGEMENT STRATEGIES HAVE LITTLE IMPACT ON FINANCIAL PERFORMANCE OF RURAL HOSPITALS

J. F. L. MD

Management strategies adopted in response to a changing hospital market apparently have little impact on the financial performance of rural hospitals in the United States, concludes a study supported by the Agency for Health Care Policy and Research (HS05998). Stephen S. Mick, PhD, of the University of Michigan, and colleagues examined the effect of thirteen management strategies on the financial performance of a national sample of 797 US rural hospitals from 1983 to 1988. Examples of these strategies are group purchasing; multihospital, HMO, or nursing home affiliation; and adoption of outpatient services either inside or outside of the hospital service area.

The researchers found no widespread or consistent connection between a hospital's strategic action and positive financial performance ... The researchers conclude from these findings that implementing strategic activities may not be sufficient for rural hospitals to maintain viable networks of acute care facilities in rural areas ...