THE ADOPTION OF CORPORATE RESTRUCTURING BY HOSPITALS

This study investigates factors associated with the adoption of corpor ate restructuring by hospitals in Massachusetts, where restructuring o ccurred much more rapidly than it did nationally. Drawing on studies o f management innovation in hospitals, this article hypothesizes that e arly adopters will differ from those that adopt later on the basis of individual and organizational factors, and that institutional forces w ill explain later adoption. The findings show no differences between e arly and later adopters but do show that after an intense period of re structuring, hospitals became less likely to adopt the innovation. The article concludes with a discussion of the impact of reimbursement la ws on the adoption pattern and the implications for the diffusion of m anagement innovation, particularly under health care reform.