Strategic planning processes and financial performance among hospitals in Lebanon

• Published in: The International journal of health planning and management 2013-01, Vol.28 (1), p.e34-e45
• Main Authors: Saleh, Shadi, Kaissi, Amer, Semaan, Adele, Natafgi, Nabil Maher
• Format: Article
• Language: English
• Subjects: Bed Occupancy - economics; Boards of directors; Chief executive officers; Corporate governance; Data Collection; Developing Countries; Economics, Hospital - organization & administration; Financial performance; Health administration; Health Planning - economics; Health Planning - methods; Hospital Administration - methods; hospital performance; Hospitals; Hospitals, Private - economics; Hospitals, Private - organization & administration; Hospitals, Public - economics; Hospitals, Public - organization & administration; Hospitals, Teaching - economics; Hospitals, Teaching - organization & administration; Humans; Lebanon; low-income and middle-income countries; Organizational Objectives - economics; Strategic planning
• ISSN: 0749-6753; 1099-1751
• DOI: 10.1002/hpm.2128

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