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The Link Between Hospital Competition and Hospital Behaviors in Korea: Competitive Interorganizational Relations

Author

Listed:
  • Keon-Hyung Lee

    (Florida State University)

  • Seunghoo Lim

    (International University of Japan)

  • Jieun Moon

    (National Assembly Budget Office)

Abstract

This study examines the effects of hospital competition on the adoption of high-tech medical equipment, the use of nonmedical service workers and the improved health status of discharged patients following medical treatment in South Korea. Using data from the 2009 South Korean Patient Survey, we used three Hirschman–Herfindahl indices ([HHIs]; combined, inpatient, and outpatient) to estimate the impact of hospital competition on (1) medical equipment adoption (magnetic resonance imaging [MRI], computerized tomography [CT], radiation, and extracorporeal shock wave lithotripsy [ESWL]) and nonmedical workers via regression models to analyze the count data; and (2) the posttreatment health status of discharged inpatients divided into two categories (improvement/full recovery and no improvement) via a multilevel logistic regression model. No association was found between hospital competition and medical equipment adoption. However, several positive associations between hospital competition and nonmedical workers, such as parking, janitorial, and security staff, were identified. Furthermore, hospital competition was not associated with posttreatment health improvements. Faced with fierce competition, Korean hospitals have focused on nonmedical patient amenities rather than adopting new medical technology or improving inpatient health. When hospitals invest more resources in nonmedical components, their medical spending must be monitored because they may decrease their medical investments, resulting in limited resources, unnecessary patient costs and excessive national health expenditures.

Suggested Citation

  • Keon-Hyung Lee & Seunghoo Lim & Jieun Moon, 2022. "The Link Between Hospital Competition and Hospital Behaviors in Korea: Competitive Interorganizational Relations," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 23(1), pages 1-14, December.
    • Handle: RePEc:spr:gjofsm:v:23:y:2022:i:1:d:10.1007_s40171-022-00305-0
    DOI: 10.1007/s40171-022-00305-0
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