Myopia management: multihospital portfolio planning.

The acquisition and divestiture of organizational business units demonstrate management's strategy in response to an evolving marketplace. From a strategic perspective, the most significant danger to a corporation is not having the "right" portfolio of businesses or products to respond to the marketplace. This article describes a conceptual model that a multihospital system executive might use to determine the growth and diversification of the organization's portfolio of businesses. The model involves the application of market, financial, and microeconomic theories in a logical sequence to assist management in making business acquisition and divestiture decisions.