Physician Joint Ventures and Performance: The Contingency Impact of Organizational Characteristics
Harry D. Holt

This study assesses the impact of hospital physician joint venture activity on hospital performance using a resource dependence and institutional theory framework. Hospital performance is measured in general acute care facilities from 2004 through 2006 in the state of Pennsylvania. We use cross-sectional ordinary least squares regression models to assess the relationship of joint ventures on performance and occupancy. We examine the moderating influence of hospital size and teaching status on occupancy and financial performance measurements. Results indicate that hospital physician joint venture activity significantly impacts occupancy and financial performance. Further, smaller hospitals experience increases in total occupancy and stronger financial performance at a higher rate than larger hospitals. The results provide support for resource dependence, institutional theory, and contingency theory as conceptual frameworks to explain the benefits of physician joint ventures for hospitals. We provide implications for managers. Findings provide empirical support for managers to initiate joint venture activities with physicians by showing their positive impacts on hospital occupancy and financial performance, especially for smaller hospitals.

Full Text: PDF     DOI: 10.15640/ijhs.v5n3a4