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Strategic Adaptations to PPS by Rural Hospitals: Implications for Theory and Research *
Author(s) -
Smith Howard L.,
Piland Neill F.
Publication year - 1990
Publication title -
the journal of rural health
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.439
H-Index - 57
eISSN - 1748-0361
pISSN - 0890-765X
DOI - 10.1111/j.1748-0361.1990.tb00196.x
Subject(s) - adaptation (eye) , perspective (graphical) , business , closure (psychology) , rural management , prospective payment system , conceptual framework , face (sociological concept) , payment , medicine , rural development , political science , psychology , sociology , geography , finance , computer science , social science , archaeology , artificial intelligence , neuroscience , law , agriculture
Medicare's Prospective Payment System (PPS) has introduced a new environment in which hospitals must either alter their strategies for delivering services or face closure. This is a challenge for rural hospitals that often lack the resources and supportive economic climate of their urban counterparts. Few guidelines are available to assist rural hospitals in responding organizationally to PPS‐induced constraints. This article examines the plight of rural hospitals from the perspective of strategic adaptation. A conceptual framework is proposed for studying strategic adaptations to PPS by rural hospitals. The implications for developing a sound research methodology are also discussed. On the basis of this research agenda, it may be possible to clarify how rural hospitals should adapt to PPS (and similar) constraints now, and in the future.