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Korean Journal of Preventive Medicine 1991;24(1): 16-28.
The recent trend and determinants of service diversification in Korean hospitals.
Sun Hee Lee, Han Joong Kim, Woo Hyun Cho
1Graduate School of Health Science and Management, Yonsei University, Korea.
2Department of Preventive Medicine and Public Health, Yonsei University, College of Medicine, Korea.
ABSTRACT
Service diversification is recognized as an important strategy against turbulent environmental change. This study is designed to find out the trend of service diversification in Korean health care organizations and also to identify factors associated with the degree of service diversification. Data were collected from 69 hospitals out of 71 hospitals with over 300 beds. Important findings are summarized below. 1. Types of diversification are closely related to hospital size. Large hospitals have a tendency to provide sophisticated service requiring specialized skills and equipment, while small hospital have concentrated their efforts on health screening programs. 2. The more competitive and bigger hospitals are, the greater number of services that provide. Also, hospitals operating rational management information systems provide more services. Contrary to the expectation, hospitals with a low performance during last 3 years showed more service diversification. 3. A trend of more diversification was observed in hospitals whose chief executive officer used a prospector strategy. 4. A multiple regression analysis revealed that bed size, competitive environment, degree of rational management, and the growth pattern were significantly associated with teh service diversification.
Key words: service diversification; strategy; rational management; bed size; competitive environment
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