Hospital administration

Medical Associates and Cardiology Hospitals of America are studying the feasibility of building a joint cardiac specialty hospital in Jasper. The president of CHA says this project should have "little or no discernible impact on neighboring general hospitals." (p. 215) Separately, the boards of both MIDCARE and Webster hospitals are very concerned and think there will be a great deal of impact on their facilities. Who is correct, and why? What should the existing hospitals do in response?