The Effects of Hospital-Physician Financial Integration on Adverse Incident Rate: An Agency Theory Perspective

Document Type

Article

Publication Date

9-9-2020

Publication Title

Health Services Management Research

First page number:

1

Last page number:

6

Abstract

Background Patient safety is an important aspect of quality of care. Physicians' alignment with hospitals by means of financial integration may possibly help hospitals achieve their quality goals. Most research examines the effects of financial integration on financial performance. There is a need to understand whether financial integration has an effect on quality and safety. Purpose The aim of this study is to examine the association between hospital physician financial integration (employment, joint ventures, and ownership) and Adverse Incident Rate. Methodology: A longitudinal panel study design was used. A random effects model with hospital, year, and state effects was used. Our sample contained 3,528 hospitals observations within U.S. from 2013-2015. Findings Contrary to our hypotheses, hospital physician financial integration does not influence AIR. Besides financial integration, hospitals need to have a high commitment towards quality and safety to influence a lower AIR.

Keywords

Financial integration; Patient safety; Physicians

Disciplines

Health Policy | Medicine and Health Sciences | Public Affairs, Public Policy and Public Administration | Public Health | Social and Behavioral Sciences

Language

English

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