Family-owned hospitals in lebanon: state of art, challenges, and performance

It is often widespread that family-owned hospitals are ‘not good enough’. Family businesses provide a critical infrastructure for economic activity and wealth creation.
The purpose of this study was to assess the extent of truth of this cliché. The art of management of family-owned hospitals in Lebanon, their challenges, and their performance were assessed. It was posited that family and business-oriented decisions emerge in areas like board of directors, human resources (HR), and strategic processes. Areas where only family members take decisions were dug into, and with respect to what decisions are made was sought to be known. The study was built on a sample of 64 family-owned hospitals in Lebanon. The response rate was 62.5%. To go beyond and give a clearer image, a specific case study based on in-depth analysis of the audit reports of 5 of the family-owned hospitals that we were able to reach was carried out. Family-owned hospitals were not as bad as the public implies about them. Most hospitals preserved their “family factor” and displayed “emotional attachment” to their businesses. “Family control” factor was also obvious throughout the study, with an important side note of the newer generation’s belief of “business-first” management style. Family-owned businesses realized the importance of emotional intelligence in retaining their employees and making them feel part of the family, however a professional HR management system lacked. Our findings highlighted that family firms can achieve successful business results by using a combination of family and business orientation in their decision-making and management styles.