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cost, hospital operation, hospital performance, market forces, quality



  1. Jiang, H. Joanna
  2. Friedman, Bernard
  3. Begun, James W.


Abstract: Using data from hospitals in ten states, this study examines the effects of organizational and market factors on the likelihood of becoming high-quality/low-cost providers during the period of 1997-2001. The findings highlight the important role of previous performance, internal operations, and market competition in hospital performance improvement. Achieving high-quality/low-cost performance is also incidentally found to be associated with improved profit margins.