DOES SCALE OF PUBLIC HOSPITALS AFFECT BARGAINING POWER? EVIDENCE FROM JAPAN

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NOTO KONOSUKE; KOJO TAKAO; INNAMI ICHIRO

مرکز اطلاعات علمی Scientific Information Database (SID) - Trusted Source for Research and Academic Resources

Journal Paper

Paper Information

Journal: International Journal of Health Policy and Management Year:2017 | Volume:6 | Issue:12 Page(s): 695-700

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Information Journal Paper

Title

DOES SCALE OF PUBLIC HOSPITALS AFFECT BARGAINING POWER? EVIDENCE FROM JAPAN

Author(s)

NOTO KONOSUKE | KOJO TAKAO | INNAMI ICHIRO | Issue Writer Certificate

Keywords

PUBLIC HOSPITALS

ECONOMIES OF SCALE

BARGAINING POWER

MANAGEMENT RESPONSIBILITY

MANAGEMENT EFFICIENCY

Abstract

Background: Many of PUBLIC HOSPITALS in Japan have had a deficit for a long time. Japanese local governments have been encouraging PUBLIC HOSPITALS to use group purchasing of drugs to benefit from the ECONOMIES OF SCALE, and increase their BARGAINING POWER for obtaining discounts in drug purchasing, thus improving their financial situation. In this study, we empirically investigate whether or not the scale of PUBLIC HOSPITALS actually affects their BARGAINING POWER.Methods: Using micro-level panel data on PUBLIC HOSPITALS, we examine the effect of the scale of PUBLIC HOSPITALS (in terms of the number of occupancy beds) on drug purchasing efficiency (DPE) (the average discount rate in purchasing drugs) as a proxy variable of the BARGAINING POWER. Additionally, we evaluate the effect of the presence or absence of MANAGEMENT RESPONSIBILITY in public hospital for economic efficiency as the proxy variable of an economic incentive and its interaction with the hospital scales on the BARGAINING POWER. In the estimations, we use the fixed effects model to control the heterogeneity of each hospital in order to estimate reliable parameters.Results: The scale of PUBLIC HOSPITALS does not positively correlate with BARGAINING POWER, whereas the MANAGEMENT RESPONSIBILITY for economic efficiency does. Additionally, scale does not interact with MANAGEMENT RESPONSIBILITY.Conclusion: Giving MANAGEMENT RESPONSIBILITY for economic efficiency to PUBLIC HOSPITALS is a more reliable way of gaining BARGAINING POWER in drug purchasing, rather than promoting the increase in scale of these PUBLIC HOSPITALS.

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APA: Copy

NOTO, KONOSUKE, KOJO, TAKAO, & INNAMI, ICHIRO. (2017). DOES SCALE OF PUBLIC HOSPITALS AFFECT BARGAINING POWER? EVIDENCE FROM JAPAN. INTERNATIONAL JOURNAL OF HEALTH POLICY AND MANAGEMENT, 6(12), 695-700. SID. https://sid.ir/paper/338386/en

Vancouver: Copy

NOTO KONOSUKE, KOJO TAKAO, INNAMI ICHIRO. DOES SCALE OF PUBLIC HOSPITALS AFFECT BARGAINING POWER? EVIDENCE FROM JAPAN. INTERNATIONAL JOURNAL OF HEALTH POLICY AND MANAGEMENT[Internet]. 2017;6(12):695-700. Available from: https://sid.ir/paper/338386/en

IEEE: Copy

KONOSUKE NOTO, TAKAO KOJO, and ICHIRO INNAMI, “DOES SCALE OF PUBLIC HOSPITALS AFFECT BARGAINING POWER? EVIDENCE FROM JAPAN,” INTERNATIONAL JOURNAL OF HEALTH POLICY AND MANAGEMENT, vol. 6, no. 12, pp. 695–700, 2017, [Online]. Available: https://sid.ir/paper/338386/en

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