The Effect of Market Competition on Hospital Performance

• Main Authors: Wen-Xian Cheng, 鄭文賢
• Other Authors: 林金賢
• Format: Others
• Language: zh-TW
• Published: 2009
• Online Access: http://ndltd.ncl.edu.tw/handle/50190548782616876401

碩士 === 國立中興大學 === 企業管理學系所 === 97 === It is obvious that competition will affect the hospital performance from the literature review; however, the direction of the effect is still undecided, which shows a gap entailing a further digging up. This thesis is trying to elaborate the relationship between them by using Herfindahl Index as the proxy of competition among the hospitals based on the data from annual national hospital survey between 1999 and 2007. The empirical results show that the competition among the hospitals in Taichung City, Taitung County, Kaohsiung County, and Taipei County, is getting more intensive during the period between 2002 and 2004. Herfindahl Index is increasing over time for each segment, showing the tendency of centralization. This study also found that the more intensive the competition, the worse the operating performance, and the better the medial quality. According to this result, each hospital may respond to the environment based on the extent of competition, and consequently develop an appropriate strategy to survive. Similarly, policy-makers could consider what kind of policy may create an environment with moderate competition under which hospitals can not only have good operating performance but also maintain the medical quality, a situation with three-way win for government, hospitals and patients.