Strategic Management of Healthcare Organizations

CHAPTER 5

Analysis of the External Environment

While humans have been attempting to treat disease since before Hippocrates developed his famous oath, the rise of what can be termed modern medicine is fairly recent. The first antibiotic was not in widespread use until the 1940s, positive pressure mechanical ventilators became common in the 1950s, the CT scanner was invented in 1972, and magnetic resonance imaging was introduced in 1977.

Throughout the past several decades, as healthcare delivery became more complex, the roles and functions of healthcare providers and the institutions that support them were largely compartmentalized. ­Hospitals focused on inpatient care had little incentive or interest in working closely with community-based physicians. ...