ACCT3206 Study Guide - Final Guide: Managed Care, Transaction Cost, Institutional Theory
Document Summary
Outsourcing of hospital services: a tale of two theories research paper 7 (balakrishnan, Authors aim to investigate the factors that drive outsourcing of services in the us hospital sector. There are many other literatures related to this topic, authors contribute to these literatures by combining transaction cost economics and institutional theory. Although authors have done great works on the topic, there are still some limitations. California, which limits generalizability to hospitals in other states. In addition, authors did not directly measure institutional constraints. This paper argues that the effects of institutional constraints on the transaction costs of outsourcing varies with the type of service outsourced and the ownership structure of the outsourcing firm. It shows that the above leads to higher outsourcing of nonclinical compared to clinical services and larger outsourcing for nonclinical services to cost pressures from managed care. Hence, this created no cost pressure or incentives to improve upon efficiency.