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Contractual Integration of Physician and Hospital Services in the U.S

Alfredo Esposto ()

Journal of Management & Governance, 2004, vol. 8, issue 1, 49-69

Abstract: Using a binary-choice, probabilistic model, this study analyzes data covering the institutional and market characteristics of 759 hospitals in 81 metropolitan statistical are as in the United States to understand why many of them have chosen to contractually integrate with physician and physician group practices. The results support the theory that the contractual integration of physician and hospital services in the U.S. during the 1990s occurred in response to market pressures to circumvent the transaction costs of monitoring physician utilization of hospital resources. They also support the views of Robinson (1997) and Shortell (1997) that the nature of the coordination, the governance structure, and the part to which market mechanisms play are largely determined by the demands for coordination from the market served by the hospital, the capabilities of the hospital to pull physicians into integration arrangements, and the historical context and constraints binding the hospital's decision making. Copyright Kluwer Academic Publishers 2004

Keywords: contractual integration; foundations; innovations in the governance structure of U.S. hospitals; integrated salaried-staff model; management service organizations; physician-hospital organizations; U.S. healthcare industry (search for similar items in EconPapers)
Date: 2004
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Citations: View citations in EconPapers (4)

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DOI: 10.1023/B:MAGO.0000015393.20769.dd

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