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Department of Economics, Lund University Working Papers, Department of Economics, Lund University

No 2007:13:
Public Hospitals - Incentives and Organization

Eric Rehn ()

Abstract: This paper presents a novel way to analyze the organization of public hospitals by applying the property rights approach to organizations (PRA) to the problem. It is proposed that while PRA is suitable for the analysis of all hospitals it is especially so for public hospitals.The analysis explores issues concerning privatization and integration of public hospital services. The findings are generally supportive of integration as long as the public principal's human capital is essential for the production of hospital care.

Keywords: Public Hospitals; The Property Rights Approach to Organizations; Joint Production; Integration; Privatization; (follow links to similar papers)

JEL-Codes: D23; I18; (follow links to similar papers)

31 pages, August 2, 2007, Revised April 1, 2008

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