Advanced Search
MyIDEAS: Login

The Internal Organization of Hospitals: Some Economic Implications

Contents:

Author Info

  • Jeffrey E. Harris
Registered author(s):

    Abstract

    This paper investigates the economic implications of the hospital's internal organizations structure. It concludes: (1) The hospital is actually two separate firms -- a medical staff (or demand division) and an administration (or supply division). Each half of the organization has its own managers, objectives, pricing strategies and constraints. (2) Within this dual organization, the medical staff and administration have devised a complicated system of nonprice allocative rules. (3) This internal allocative scheme is subject to repeated breakdowns, especially when the medical staff's internal demands exceed the short-run capacity supplied by the administration. (4) Our current regulatory policy toward hospitals is almost exclusively directed at the supply side of the organization. Unless we revise our definition of "hospital" to include the doctor part of the firm, this policy is doomed to failure. (5) Ultimately, a rational public policy toward hospitals requires a change in the internal organization of the hospital itself.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://links.jstor.org/sici?sici=0361-915X%28197723%298%3A2%3C467%3ATIOOHS%3E2.0.CO%3B2-6&origin=repec
    File Function: full text
    Download Restriction: Access to full text is restricted to JSTOR subscribers. See http://www.jstor.org for details.

    As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

    Bibliographic Info

    Article provided by The RAND Corporation in its journal Bell Journal of Economics.

    Volume (Year): 8 (1977)
    Issue (Month): 2 (Autumn)
    Pages: 467-482

    as in new window
    Handle: RePEc:rje:bellje:v:8:y:1977:i:autumn:p:467-482

    Contact details of provider:
    Web page: http://www.rje.org

    Order Information:
    Web: https://editorialexpress.com/cgi-bin/rje_online.cgi

    Related research

    Keywords:

    References

    No references listed on IDEAS
    You can help add them by filling out this form.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as in new window

    Cited by:
    1. Cutler, David M, 1995. "The Incidence of Adverse Medical Outcomes under Prospective Payment," Econometrica, Econometric Society, vol. 63(1), pages 29-50, January.
    2. Daidone, Silvio & Street, Andrew, 2013. "How much should be paid for specialised treatment?," Social Science & Medicine, Elsevier, vol. 84(C), pages 110-118.
    3. Randall D. Cebul & James B. Rebitzer & Lowell J. Taylor & Mark E. Votruba, 2008. "Organizational Fragmentation and Care Quality in the U.S. Healthcare System," Journal of Economic Perspectives, American Economic Association, vol. 22(4), pages 93-113, Fall.

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:rje:bellje:v:8:y:1977:i:autumn:p:467-482. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.