Enterprise Strategy

“Today’s hospital is the community’s center of health care and advanced medical technology. It is also the most complex human institution around, with a profusion of services and healthcare professionals which nobody dreamed of even fifty years ago.”

Drucker, Peter. Toward the Next Economics. Boston: Harvard Business Review Press, 1981.

In that era:

  • Hospitals were cost-plus

  • Hospitals did not employ physicians

  • Hospitals were not taking risk like insurance companies

Today:

  • Those conditions have long-since disappeared

  • Reimbursement trends are negative (in real terms)

  • New forms of competition appear on almost a daily basis (e.g. United Healthcare, Amazon)

  • The focus of health care has expanded to include chronic care

As a result, leaders must select one (or many) complementary strategic paths for their increasing complex entities.