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PubMed1986

Avoiding the pitfalls of for-profit diversification: a case study.

The development of centralized materials management systems in more and more hospitals has resulted in increased operating efficiencies. Hospital administrators have thus been prompted to market these materials management services to outside businesses on a contract basis. The trend is toward the creation of a free-standing supply subsidiary, as a separate, for-profit corporation from the hospital. The following hypothetical case concerns a fictitious hospital which is entering the for-profit supply business. The case sets forth the business plans of the hospital and the legal questions of the materials manager who will run the supply business.

Economic Competition↗