Strategic alliances and hospitals: a US perspective

The number of hospital providers in the USA is shrinking and the market is becoming increasingly competitive. Many financially challenged hospital institutions are searching for a better way to compete. Contends that strategic alliances offer many attractive solutions for hospital management which include: scale economies, relative low cost for risk sharing and improved efficiency. Argues that the future of alliances focuses on capitation, quality information systems for co-ordination, and the continuum of care which a strategic alliance can provide to a community.