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Ownership, Control, Agency And Residual Claims In Healthcare: Insights On Cooperatives And Non-Profit Organizations

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  • Carolyn CORDERY
  • Bronwyn HOWELL

Abstract

Many issues surrounding healthcare entities' performance can be traced to their governance and ownership. Increasingly, public services are being provided by non-profit organizations and/or cooperatives, particularly in the healthcare sector. This is not unproblematic. We draw on the conceptual separation of ownership and control, and the notion of firm ownership to derive a taxonomy of dimensions along which a contractual- and property rights theory of the firm can be structured, in order to determine the nature of firms' differences. We utilize the taxonomy to illustrate important distinctions between non-profit and cooperative firms in the primary healthcare sector and propose testable hypotheses. Funders and regulators must recognise the differences between these firms, if public funding of healthcare is to achieve the expected outcomes.

Suggested Citation

  • Carolyn CORDERY & Bronwyn HOWELL, 2017. "Ownership, Control, Agency And Residual Claims In Healthcare: Insights On Cooperatives And Non-Profit Organizations," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 88(3), pages 403-424, September.
    • Handle: RePEc:bla:annpce:v:88:y:2017:i:3:p:403-424
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    Cited by:

    1. Howell, Bronwyn E. & Potgieter, Petrus H. & Sadowski, Bert M., 2019. "Governance of Blockchain and Distributed Ledger Technology Projects," 2nd Europe – Middle East – North African Regional ITS Conference, Aswan 2019: Leveraging Technologies For Growth 201737, International Telecommunications Society (ITS).
    2. Silvia Sacchetti & Carlo Borzaga, 2021. "The foundations of the “public organisation”: governance failure and the problem of external effects," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 25(3), pages 731-758, September.

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