Business and Architecture: New Directions for Rural & Small Hospitals
J. Mark Smith, MBA, Assoc. AIA
Vice President
Easter and Mason Health Care Consulting Corporation
Nashville, Tennessee

Rural and small hospitals are undergoing the dynamics of change in the healthcare industry that parallel - but do not precisely match - the trends of large hospitals in the major cities. These hospitals face the problem of limited resources which are less of an obstacle for large city hospitals that have a substantial patient population. This study will review three rural hospitals you order, to explore the dynamics of facility change integral to strategies for the improvement of quality care and market share. Although often the last resort physical changes can be one of the most dynamic solutions toward improving quality of care, market share, controlling costs, and increasing revenues.

More than ever, business factors determine decisions regarding facilities. Among the many business changes in the healthcare industry, we are aware of certain salient factors:

1. Current trends in type of care indicate growth in outpatient care relative to traditional care.
2. There is a shift in the level and variety of care for the elderly and long term disabled, including a "continuum of care" to meet various levels of need.
3. The major emphasis of healthcare dynamics is now cost-driven, and is the primary basis for healthcare organizations' responses to managed care and potential government cutbacks of Medicare and Medicaid.
4. Demographics are changing. Expectations are rising. Consumers are more educated and "choosy".
5. Short Stay and Outpatient Clinics are expected to be as sophisticated and thorough as the former longer stays of traditional medicine. The trend is toward the advanced, high technology Outpatient Clinic, including the specialty clinic, such as cancer centers.
6. Facility solutions are driven by cost and functional requirements. Facility changes are often the last resort in the mix of solutions to the problems of shrinking market share, reduced patient and indemnified revenues, and rising costs.

The facility changes are of primary concern to architects and planners who serve the healthcare industry. Although often the last resort at rural and small hospitals, the physical changes can be one of the most dynamic solutions toward improving quality of care and market share, controlling costs, and increasing revenues, as the following cases demonstrate.

Facility planning, design and development cannot be divorced from the business of the hospital. An integral relationship exists between the many business strategies and effective facility strategies in the cases below, and in the general discussion that follows.

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