Abstract
The impact of Federal and State funding levels on strategic decisions and how those decisions affect patient care The purpose of this study was to determine hospital executive management's perceptions of how turbulence in the politico-legal sector of the macroenvironment impacted the strategic management systems of Tennessee hospitals. In particular how did Federal and State funding restrictions (Medicare and TennCare) impact the strategic planning and implementation process of these hospitals. Specifically this study was also designed to gain insight into strategic choices and their impact upon patient care. Data were collected from the Chief Executive Officers (CEOs) of Tennessee's acute care hospitals with fifty five percent participating in the study. The results of the data analysis gave insight into how reductions in TennCare and Medicare funding levels impacted the strategies employed by Tennessee hospital's CEOs, and potential impact of these choices on patient care.
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