Strategies for multi-hospital networks: A framework

The last two decades have seen the significant emergence of multi-hospital networks (MHNs) in the health sectors of all industrialized countries. Such networks seem to represent an organizational choice, which provides interesting opportunities to cope with cost and quality issues stressing the health field. This work proposes and discusses a framework for strategies that can be implemented by MHNs to achieve projected benefits. The estimated advantages are then weighed against unexpected or underrated drawbacks and empirical evidence. The conclusions point out MHNs as viable future alternatives for freestanding hospitals looking to improve their efficiency and financial stability, on condition that a 'proper management' of their consolidation processes is carried out. This requires extensive pre-deal analysis to critically assess what benefits could be achieved through the network's formation, as well as post-deal perseverance in implementing consolidation strategies to their full. In this perspective, specific advices apt to minimize the risk of creating MHNs in the wake of a management fashion instead of through sound rational assessments are also discussed.