The impact of some proposed policy changes on the nursing home system.
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The ability of corporations to defend or take market share from competitors varies with the corporations' strengths and weaknesses, may of which spring from their own structures. The challenge is not to design organizational structures that are perfect, but to design structures that are better than those of competitors.
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The recent upheaval in the health care industry has left administrators scrambling after strategies that will ensure their organizations' survival. The author discusses Affiliated Healthcare Systems' successful use of a diversification strategy. Special attention is given to explaining how other organizations might use this system's experience to reduce the risks and increase the rewards inherent in this strategic alternative.
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