| Author: | Dranove, D. Shanley, M. |
| Title: | Cost reductions or reputation enhancement as motives for mergers: the logic of multihospital systems |
| Journal: | Strategic Management Journal
1995 : JAN, VOL. 16:1, p. 55-74 |
| Index terms: | MERGERS MOTIVATION CONSUMERS |
| Language: | eng |
| Abstract: | This paper examines two motives for the formation of local multihospital systems: cost reduction and reputation enhancement. Systems may reduce costs by eliminating redundancies and reducing administrative costs. Integration may also lower costs for consumers seeking consistently high quality. The authors hypothesize that if systems achieve either cost or reputation benefits, then member hospitals will "look" different from random collections of hospitals. The findings here challenge the assumptions behind popular health reform initiatives. |
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