This article explores the relationships among rural hospital strategic behavior (market power and cost control strategies), environmental and organizational characteristics, and the influence these have on the financial performance of rural hospitals in the United States. The study finds that only market power strategies and organizational characteristics (ownership and size) exhibit significant impacts on rural hospital financial performance.
Hanh Q. Trinh, Ph.D., is Associate Professor, Health Care Administration and Informatics Program, School of Allied Health Professions, University of Wisconsin-Milwaukee.
Stephen J. O'Connor, Ph.D., is Associate Professor, School of Business Administration, University of Wisconsin-Milwaukee.
This article received the best paper award in October 1999 from the Southern Management Association-Health Care, Public Sector, and Hospitality Management Track.
The research on which this article is based was supported by a grant to the first author from the University of Wisconsin-Milwaukee Graduate School.