The impact of regulation on the administrative structure of hospitals: toward an analytic framework

The dramatic and recent regulatory changes in the hospital industry (e.g., TEFRA , DRG-based reimbursement) have given added impetus to the analytic framework developed here. Regulation will play an increasingly important role in the future of hospitals, affecting not only fiscal operations, but organizational and administrative arrangements as well. The conceptual framework developed in this article will be refined and augmented through empirical research. Healthcare executives will then have a stronger basis for adapting organizationally to changes in their regulatory environments, thereby increasing the effectiveness and survival of their institutions.