Revisiting the unholy alliance of health-care operations: Payor–provider integration of occupational health services
Research output: Contribution to journal › Article › Scientific › peer-review
Design/methodology/approach: A two stage multimethod case study of occupational health services. A qualitative stage aimed to understand the reasons, mechanisms, and outcomes of payor–provider integration. A quantitative stage evaluated the performance of the integrated hospital against a fee-for-service partner hospital with a sample of 2,726 patients.
Findings: Payor–provider integration mitigates agency problems on multiple levels of the service system by complementing formal governance mechanisms with informal mechanisms. Compared to partner hospitals, the integrated hospital yielded 9% lower the total costs of occupational injuries achieved primarily by emphasizing conservative care and faster recovery.
Research limitations/implications: Focuses on occupational health services in Finland. Provides initial evidence of the effects of payor–provider integration on the operational performance.
Practical implications: Vertical integration may provide systematic outcomes but requires mindful implementation of multiple mechanisms. Rigorous change management initiative is advised.
Social implications: For patients, the research shows payor–provider integration of health services can be implemented in a manner that it reduces care costs while not compromising care quality and customer satisfaction.
Originality/value: This study provides a rare longitudinal analysis of payor–provider integration in health-care operations management. The study adds to the knowledge of operational performance improvement of health services.
|Journal||International Journal of Operations & Production Management|
|Publication status||Accepted/In press - 9 Feb 2020|
|MoE publication type||A1 Journal article-refereed|
- payor–provider integration, health-care operations management, agency theory, incentives, multimethod study