IPCHS. Integrated People-Centred Health Services

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Contents tagged: economies of scale

Jan. 23, 2018 Western Pacific Publication

Does Scale of Public Hospitals Affect Bargaining Power? Evidence From Japan

Many of public hospitals in Japan have had a deficit for a long time. Japanese local governments have been encouraging public hospitals to use group purchasing of drugs to benefit from the economies of scale, and increase their bargaining power for obtaining discounts in drug purchasing, thus improving their financial situation. In this study, they empirically investigate whether or not the scale of public hospitals actually affects their bargaining power.