Date of Conferral

2021

Degree

Doctor of Healthcare Administration (D.H.A.)

School

Health Services

Advisor

Lee Bewley

Abstract

The primary aim of this study was to enhance understanding of the fundamental socioeconomic problem associated with inefficient hospital competition in the United States in terms of demand and supply of services as well as the efficiency of hospitals. The relationship between market competition and hospital efficiency was investigated among general medical and surgical hospitals in Georgia. The X-efficiency theory was used which defines efficiency as the degree of effectiveness that an organization can maintain while operating in imperfect competition. The theory is most applicable in terms of addressing imperfect market characteristics of the healthcare industry. Correlations between efficiency and competition were conducted. Secondary data from all hospitals in Georgia were analyzed to test hypotheses. Statistical data were employed involving descriptions to assess population tendencies and correlations to test efficiency of technology and best practices. Specifically, a t-test with multiple regression data analyses tested hypotheses. Study findings revealed that for-profit hospitals have slightly higher efficiency than nonprofit and government hospitals. Also, results suggested that highly skilled hospitals have relatively low average costs, high profit margins, and high labor productivity. These findings may be used by hospital administrators to better serve their patients and communities.

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