Strategic planning in the hospital today--a mandatory process

Since the beginning of this decade strategic planning has become a common analytical method in nonprofit organizations, as well as in the business sector. In the nonprofit sector it has been implemented mainly in hospitals and universities. From experience, it is clear that strategic planning has contributed to the hospital's survival, improved performance, implementation and control. However, such good results have only followed correct planning and implementation, with emphasis on the business elements of an economic firm, such as marketing and budgetary planning, a control system and funding with increasing integration of "mathematical business" models. Recent studies have proved that strategic planning is a necessary condition for the survival of nonprofit organizations in a competitive environment. Experience demonstrates that modification of the business model of strategic planning in the nonprofit sector has significant advantages for both public and private sectors. We describe the way strategic planning is performed in hospitals, as well as relevant modification and limitation of the process. Our message to Israeli hospitals is that those which do not prepare themselves systematically for change, may find survival impossible.