Strategic planning processes and financial performance among hospitals in Lebanon

Shadi S Saleh · Amer A. Kaissi · Adele Semaan · Nabil Natafgi

23 citations0/0 files storedThe International Journal of Health Planning and Management

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Organizational Strategy and Culture Health Services Management and Policy Healthcare Quality and Management

Abstract

BACKGROUND: Strategic planning has been presented as a valuable management tool. However, evidence of its deployment in healthcare and its effect on organizational performance is limited in low-income and middle-income countries (LMICs). The study aimed to explore the use of strategic planning processes in Lebanese hospitals and to investigate its association with financial performance. METHODS: The study comprised 79 hospitals and assessed occupancy rate (OR) and revenue-per-bed (RPB) as performance measures. The strategic planning process included six domains: having a plan, plan development, plan implementation, responsibility of planning activities, governing board involvement, and physicians' involvement. RESULTS: Approximately 90% of hospitals have strategic plans that are moderately developed (mean score of 4.9 on a 1-7 scale) and implemented (score of 4.8). In 46% of the hospitals, the CEO has the responsibility for the plan. The level of governing board involvement in the process is moderate to high (score of 5.1), whereas physician involvement is lower (score of 4.1). The OR and RPB amounted to respectively 70% and 59 304 among hospitals with a strategic plan as compared with 62% and 33 564 for those lacking such a plan. No statistical association between having a strategic plan and either of the two measures was detected. However, the findings revealed that among hospitals that had a strategic plan, higher implementation levels were associated with lower OR (p < 0.05). CONCLUSIONS: In an LMIC healthcare environment characterized by resource limitation, complexity, and political and economic volatility, flexibility rather than rigid plans allow organizations to better cope with environmental turbulence.

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References

2001The Contingency Theory of Organizations 2003Does business planning facilitate the development of new ventures?1997Institutions and Organizations 2003Execution: the discipline of getting things done 1987The Tenuous Link Between Formal Strategic Planning and Financial Performance 1994Strategic management of health care organizations 2002What can be done about the private health sector in low-income countries?2003Health Care Organizations as Complex Adaptive Systems

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