Abstract
To date, strategic management research in health care is largely confined to the acute care sector of the industry. This research examines the linkages among environmental scanning, competitive strategy and performance in physical therapy facilities. Nontrivial differences between acute and subacute care firms suggest the role of environmental scanning may change in non-acute care settings. Consistent with previous research, these results indicate that the frequency of internal and external scanning is related to the strategic orientation of physical therapy facilities. Contrary to the expectations, broader scope of scanning is positively related to an increasing market-focused and increasing efficiency strategic orientation. A key objective of the research is to test the impact of strategy/scanning alignment on facility performance. These findings support predictions on the moderating role of scanning activities in the strategy-performance relationship. However, a paradoxical pattern of results has possible implications for clinician managers in subacute care settings as well as the interpretation of scanning activities.