IDEAS home Printed from https://ideas.repec.org/p/vuw/vuwcsr/19020.html
   My bibliography  Save this paper

A Response to Vaithianathans the Failure of Corporitisation: Public Hospitals in New Zealand

Author

Listed:
  • Howell, Bronwyn

Abstract

Rhema Vaithianathan's article The Failure of Corporatisation: Public Hospitals in New Zealand (Agenda 6(4) 1999 325-338) argues that corporatisation of New Zealand's public hospitals failed to yield the expected efficiency results due to the failure to recognise that the change in formal authority from an executive team comprised of medical staff to one comprised of professional managers belied the unchanged nature of real authority which remained with medical staff and in particular with doctors.However this explanation fails to recognise that the model on which it was based has been applied successfully for many years in New Zealand's private nonprofit hospitals. These nonprofit hospitals are managed by professional managers are staffed in most instances by the same medical personnel as the state-owned hospitals and are constrained by essentially the same "political ownership" issues of separation of legal and beneficial ownership and real and formal control as the public system. Hence the issue is not one of failure of corporatisation per se but a fundamental failure by policy-makers to sufficiently scope and fully understand the range of stakeholders' rights impacted by the change.

Suggested Citation

  • Howell, Bronwyn, 2000. "A Response to Vaithianathans the Failure of Corporitisation: Public Hospitals in New Zealand," Working Paper Series 19020, Victoria University of Wellington, The New Zealand Institute for the Study of Competition and Regulation.
    • Handle: RePEc:vuw:vuwcsr:19020
    as

    Download full text from publisher

    File URL: https://ir.wgtn.ac.nz/handle/123456789/19020
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Williamson, Oliver E, 1983. "Organization Form, Residual Claimants, and Corporate Control," Journal of Law and Economics, University of Chicago Press, vol. 26(2), pages 351-366, June.
    2. Robert Gibbons, 1998. "Incentives in Organizations," Journal of Economic Perspectives, American Economic Association, vol. 12(4), pages 115-132, Fall.
    3. Holmstrom, Bengt & Milgrom, Paul, 1991. "Multitask Principal-Agent Analyses: Incentive Contracts, Asset Ownership, and Job Design," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 7(0), pages 24-52, Special I.
    4. Fama, Eugene F & Jensen, Michael C, 1983. "Separation of Ownership and Control," Journal of Law and Economics, University of Chicago Press, vol. 26(2), pages 301-325, June.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. repec:vuw:vuwscr:19020 is not listed on IDEAS
    2. Howell, Bronwyn, 2000. "A Response to Vaithianathans the Failure of Corporitisation: Public Hospitals in New Zealand," Working Paper Series 3921, Victoria University of Wellington, The New Zealand Institute for the Study of Competition and Regulation.
    3. George Baker, 2000. "The Use of Performance Measures in Incentive Contracting," American Economic Review, American Economic Association, vol. 90(2), pages 415-420, May.
    4. Vladislav Valentinov, 2007. "The Property Rights Approach to Nonprofit Organization: The Role of Intrinsic Motivation," Public Organization Review, Springer, vol. 7(1), pages 41-55, March.
    5. Gottschalg, Oliver & Zollo, Mauricio, 2006. "Interest alignment and competitive advantage," HEC Research Papers Series 823, HEC Paris.
    6. Ansgar Richter & Susanne Schrader, 2017. "Levels of Employee Share Ownership and the Performance of Listed Companies in Europe," British Journal of Industrial Relations, London School of Economics, vol. 55(2), pages 396-420, June.
    7. Thiele, Veikko, 2007. "Performance measurement in multi-task agencies," Research in Economics, Elsevier, vol. 61(3), pages 148-163, September.
    8. Maria Cotofan, 2019. "Learning from Praise: Evidence from a Field Experiment with Teachers," Tinbergen Institute Discussion Papers 19-082/V, Tinbergen Institute.
    9. Luis Garicano & Richard A. Posner, 2005. "Intelligence Failures: An Organizational Economics Perspective," Journal of Economic Perspectives, American Economic Association, vol. 19(4), pages 151-170, Fall.
    10. Block, Sidney T. & Friebel, Guido & Heinz, Matthias & Zubanov, Nick, 2022. "Mystery Shopping as a Strategic Management Practice in Multi-Site Firms," IZA Discussion Papers 15599, Institute of Labor Economics (IZA).
    11. Luis Garicano & Luis Rayo, 2016. "Why Organizations Fail: Models and Cases," Journal of Economic Literature, American Economic Association, vol. 54(1), pages 137-192, March.
    12. Bushman, Robert M. & Smith, Abbie J., 2001. "Financial accounting information and corporate governance," Journal of Accounting and Economics, Elsevier, vol. 32(1-3), pages 237-333, December.
    13. Yoshikatsu Shinozawa, 2007. "The Effect of Organisational Form on Investment Products: an empirical analysis of the UK unit trust industry," Corporate Governance: An International Review, Wiley Blackwell, vol. 15(6), pages 1244-1259, November.
    14. Krasteva, Silvana & Sharma, Priyanka & Wagman, Liad, 2015. "The 80/20 rule: Corporate support for innovation by employees," International Journal of Industrial Organization, Elsevier, vol. 38(C), pages 32-43.
    15. Sarena F. Goodman & Lesley J. Turner, 2013. "The Design of Teacher Incentive Pay and Educational Outcomes: Evidence from the New York City Bonus Program," Journal of Labor Economics, University of Chicago Press, vol. 31(2), pages 409-420.
    16. Jacqueline Christensen & Pamela Kent & Jenny Stewart, 2010. "Corporate Governance and Company Performance in Australia," Australian Accounting Review, CPA Australia, vol. 20(4), pages 372-386, December.
    17. Jirjahn, Uwe & Mohrenweiser, Jens, 2023. "Variable Payment Schemes and Productivity: Do Individual-Based Schemes Really Have a Stronger Influence than Collective Ones?," IZA Discussion Papers 16267, Institute of Labor Economics (IZA).
    18. Moscelli, G.; & Sayli, M.; & Blanden, J.; & Mello, M.; & Castro-Pires, H.; & Bojke, C.;, 2023. "Non-monetary interventions, workforce retention and hospital quality: evidence from the English NHS," Health, Econometrics and Data Group (HEDG) Working Papers 23/13, HEDG, c/o Department of Economics, University of York.
    19. Alberto Bayo-Moriones & Jose E. Galdon-Sanchez & Sara Martinez-de-Morentin, 2017. "Performance Measurement and Incentive Intensity," Journal of Labor Research, Springer, vol. 38(4), pages 496-546, December.
    20. repec:hal:journl:hal-00823521 is not listed on IDEAS
    21. Carmen Bevia & Luis Corchon, "undated". "Rational Sabotage in Cooperative Production," UFAE and IAE Working Papers 541.02, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
    22. Fali Huang & Peter Cappelli, 2006. "Employee Screening: Theory and Evidence," NBER Working Papers 12071, National Bureau of Economic Research, Inc.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:vuw:vuwcsr:19020. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Library Technology Services (email available below). General contact details of provider: https://edirc.repec.org/data/fcvuwnz.html .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.