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

In: Evaluating Hospital Policy and Performance: Contributions from Hospital Policy and Productivity Research

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  • Ila Semenick Alam
  • Gerald Granderson

Abstract

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.

Suggested Citation

  • Ila Semenick Alam & Gerald Granderson, 2007. "Chapter 5 Organizational Structure and Productive Efficiency of Non-Profit Hospitals," Advances in Health Economics and Health Services Research, in: Evaluating Hospital Policy and Performance: Contributions from Hospital Policy and Productivity Research, pages 63-88, Emerald Group Publishing Limited.
    • Handle: RePEc:eme:aheszz:s0731-2199(07)00005-2
    DOI: 10.1016/S0731-2199(07)00005-2
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