The effects of corporate restructuring on hospital policymaking

J. A. Alexander, L. L. Morlock, B. D. Gifford

Research output: Contribution to journalArticlepeer-review

42 Scopus citations

Abstract

Hospital corporate restructuring is the segmentation of assets or functions of the hospital into separate corporations. While these functions are almost always legally separated from the hospital, their impact on hospital policymaking may be far more direct. This study examines the effects of corporate restructuring by community hospitals on the structure, composition, and activity of hospital governing boards. In general, we expect that the policymaking function of the hospital will change to adapt to the multicorporate structure implemented under corporate restructuring, as well as the overlapping boards and diversified business responsibilities of the new corporate entity. Specifically, we hypothesize that the hospital board under corporate restructuring will conform more to the 'corporate' model found in the business/industrial sector and less to the 'philanthropic' model common to most community hospitals to date. Analysis of survey data from 1,037 hospitals undergoing corporate restructuring from 1979-1985 and a comparison group of 1,883 non-corporately restructured hospitals suggests general support for this hypothesis. Implications for health care governance and research are discussed.

Original languageEnglish (US)
Pages (from-to)311-337
Number of pages27
JournalHealth services research
Volume23
Issue number2
StatePublished - Jan 1 1988
Externally publishedYes

ASJC Scopus subject areas

  • Health Policy

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