Chapter 5 Organizational Structure and Productive Efficiency of Non-Profit Hospitals

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Advances in Health Economics and Health Services Research

ISSN: 0731-2199
Series editor(s): Prof. Michael Grossman, Prof. Bjorn Lindgren, Prof. Robert Kaestner, Prof. Kristian Bolin

Subject Area: Health Care Management/Healthcare

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Document Information:
Title:	Chapter 5 Organizational Structure and Productive Efficiency of Non-Profit Hospitals
Author(s):	Ila Semenick Alam, Gerald Granderson
Volume:	18 Editor(s): Jos L.T. Blank, Vivian G. Valdmanis ISBN: 978-0-7623-1453-9 eISBN: 978-1-84950-577-2
Citation:	Ila Semenick Alam, Gerald Granderson (2007), Chapter 5 Organizational Structure and Productive Efficiency of Non-Profit Hospitals, in Jos L.T. Blank, Vivian G. Valdmanis (ed.) Evaluating Hospital Policy and Performance: Contributions from Hospital Policy and Productivity Research (Advances in Health Economics and Health Services Research, Volume 18), Emerald Group Publishing Limited, pp.63-88
DOI:	10.1016/S0731-2199(07)00005-2 (Permanent URL)
Publisher:	Emerald Group Publishing Limited
Article type:	Chapter Item
Extract:	This chapter investigates whether signing more hospital contracts with Health Maintenance Organizations (HMOs) and Preferred Provider Organizations (PPOs), hospital affiliation in a system, having more system hospital members located in the same area, and increased competition from area hospitals, contributes to improvements in the cost efficiency of U.S. Midwestern hospitals. Hospitals may offer HMOs and PPOs discounts on contracts to provide health care services to firm employees enrolled in HMOs and PPOs (discounts would lead to smaller price mark-ups over costs for hospital services). Enacting policies to enhance cost efficiency may help hospitals maintain a specified level of profits.