The pressures for closer alignment between physicians and hospitals in both
rural and urban areas are increasing. This study empirically specifies ind
ependent dimensions of physician and clinical integration and compares the
extent to which such activities are practiced between rural and urban hospi
tals and among rural hospitals in different organizational and market conte
xts. Results suggest that both rural and urban hospitals practice physician
integration, although each emphasizes different types of strategies. Secon
d, urban hospitals engage in clinical integration with greater frequency th
an their rural counterparts. Finally, physician integration approaches in r
ural hospitals are more common among larger rural hospitals, those proximat
e to urban facilities, those with system affiliations, and those not under
public control.