Background

Chief Executive Officers (CEOs) of hospitals are responsible for key management tasks such as strategic planning, financial stability and quality of care. Therefore, management changes can have far-reaching effects on the structure and service provision in the hospital. Despite the increasing and above-average rate of management changes in hospitals compared to other sectors, little research has been conducted into their effects.

Aim

The research project aims to analyze the effects of management changes in hospitals on important competitive outcomes, such as patient satisfaction, technical efficiency and financial performance, taking into account mediating and moderating factors.

Research design and approach

First, the current state of research on the predictors and effects of management changes in hospitals is summarized by means of a systematic literature review. Then, based on routine data from various sources, comparable hospitals with and without management changes will be compared over time. The aim is to gain insights into the effects that can be attributed to changes in management. Furthermore, the characteristics of the hospitals, the CEOs and their strategic decisions are examined within the framework of moderation and mediation analyses.

Preliminary results

Previous studies, which so far allow few causal conclusions, find that variations in management turnover rates can be partly explained by environmental and organizational characteristics such as competitive intensity, hospital ownership and size. Regarding the potential effects of management change, previous results suggest a (short-term) deterioration in financial performance, employee satisfaction and a higher probability of organizational failure. Our analyses largely confirm the predictors and also show that management changes have at least a temporary negative impact on financial performance, especially in large and economically poorly positioned hospitals.