The vision gives wings: A study of two hospitals run as limited companies

• On 1 January 2000, the hospitals in Helsingborg and Ängelholm in the south of Sweden where reorganised as limited companies. This paper examines the outcome of the company formation and what mechanisms that result in change when the hospital is transferred from a local authority regime to a business-like form. The study shows that company formation in hospitals does have effects. On the short view (the first year studied), production increases and the financial situation improves. The study also shows that the leadership of the hospitals becomes more commercially minded and develops more rapid decision making procedures. The new found freedoms, the new financial structures and the possibilities to perform without budget restrictions create a foundation for goal-congruence between the medical professionals and the hospital leaderships and a common vision to strive for. This vision, to create something new in Swedish healthcare, gives wings to the organisations.

Subject headings

SAMHÄLLSVETENSKAP  -- Ekonomi och näringsliv (hsv//swe)

SOCIAL SCIENCES  -- Economics and Business (hsv//eng)

Keyword

Public limited companies; Purchaser–provider model

Owner relations

Competition

Managerial freedom

Business and economics

Ekonomi

Organisation theory

Organisationsteori

Publication and Content Type

ref (subject category)

art (subject category)