Cooperative ventures in a competitive environment: the influence of regulation on management decisions.
Two generalized game theory models are developed to explain observed management decisions between two large hospitals in Shelby County Tennessee within the regulatory context of competition for an advanced radiological technology pursued through the certificate-of-need process. The first model rationalizes each hospital's decision to submit competing certificate-of-need applications. The second model rationalizes the eventual joint venture agreement between the two hospitals and offers an explanation as to why the technology has yet to be acquired. The models are tested through interviews with the hospital administrators responsible for negotiating the joint venture agreement. The interviews confirm a preemptive motive behind each hospital's decision to compete and that the certificate-of-need requirement contributed to the eventual joint venture agreement.
Weingarten
J P
JP
Mid-South Foundation for Medical Care, Memphis, TN, USA. tnpro.jweingarten@sdps.org
D002567:Certificate of Need / Q000191:economics / Q000331:legislation & jurisprudence*; D003299:Cooperative Behavior; D003365:Costs and Cost Analysis; D003659:Decision Making, Organizational; D004465:Economic Competition; D005716:Game Theory; D006752:Hospital Planning / Q000191:economics / Q000331:legislation & jurisprudence*; D006755:Hospital Shared Services; D007373:Interinstitutional Relations; D017008:Negotiating; D011872:Radiology Department, Hospital / Q000191:economics; D013714:Tennessee; D014055:Tomography, Emission-Computed / Q000191:economics*