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The Reducing Hospital Costs through Horizontal Integration
Pavla Staňková1, Šárka Papadaki2, Ján Dvorský2
1Department of Management and Marketing, Faculty of Management and Economics, Tomas Bata University, Zlín, Czech Republic.
Iranian Journal of Public Health
|January 24, 2020
Summary
Horizontal integration of Czech region hospitals significantly reduced patient treatment costs. Managers confirmed savings through central purchasing and better supplier negotiations, boosting efficiency.
Area of Science:
- Health Economics
- Healthcare Management
- Regional Health Systems
Background:
- Investigated the impact of horizontal integration on hospital cost behavior in the Czech Republic.
- Focused on regional hospitals at the NUTS 3 level (Administrative Regions).
Purpose of the Study:
- To examine the effects of horizontal integration on cost behavior within Czech regional hospitals.
- To assess the impact on patient treatment costs per day.
Main Methods:
- Utilized data from the Institute of Health Information and Statistics of the Czech Republic.
- Conducted a survey of hospital managers in horizontally integrated facilities (April-August 2016).
- Employed descriptive statistics and data visualization using Statgraphics Centurion XVII.
Main Results:
- Up to 80% of observed hospitals reported decreased patient treatment costs per day post-integration.
- 73% of hospital managers confirmed cost reductions, citing central purchasing and investments as key factors.
- Enhanced negotiation power with suppliers was identified as a major advantage.
Conclusions:
- Horizontal integration demonstrably leads to cost reduction in Czech regional hospitals.
- Integration enhances operational efficiency within the NUTS 3 level healthcare environment.
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