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Competitive business strategy for teaching hospitals by James R. Langabeer, John Napiewocki

By James R. Langabeer, John Napiewocki

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Residents and trainees are continually cycled in and out of the teaching hospital. Finally, since most practitioners split their time between several organizations, such as the medical school and hospital, clinical productivity gains are not rewarded or even measured in many cases. Consequently, no experience curve effects are noticeable. Page 16 Teaching hospitals are also complex because oftentimes the needs of the medical school differ from the needs of the teaching hospitals. An example of this is that medical schools currently need to produce more primary care, generalist physicians.

In order to compete, teaching hospitals must play on the same playing field as the private for-profit hospital chains, the managed care insurance organizations, and other partners in the healthcare value chain. This book aims to level the playing field by providing the tools and concepts of strategic management, in practical terms, the healthcare providers can understand and utilize. It was written because the authors strongly believe that teaching hospitals should strive to remain the cornerstone of the modern healthcare system.

A text that has come the closest to dealing with business strategy issues for academic hospitals is T. , Governing University Hospitals in a Changing Environment (1986), although this book limits its thesis primarily to issues of ownership and control. Page 9 Chapter 2 A Primer on Teaching Hospitals INTRODUCTION The mission of a teaching hospital is significantly different than any other institution. Before we examine how market forces are redefining academic healthcare, it is important to get a feel for the complexities inherent in this type of organization.

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