The practice of management control and the design of management control systems draws upon a number of academic disciplines. This approach was instituted in the United States in by the federal government, as the basis of Medicare reimbursement generally, patients over 65 years.
This allows to link your profile to this item. In recognition of the adverse incentives created by previous hospital funding methods, Ontario and Alberta have recently instituted a payment method based on the DRG-funding system. Some stays are excessive and hospitalizations are prolonged because of insufficient post-discharge home services, which would make it easier for hospitals to discharge patients earlier, or treat them on an ambulatory basis.
Evidence from the analysis of over 16, physicians in more than practices indicates that medical practices conform relatively well to economic theories on compensation design, although much of the variation in compensation plans remains unexplained.
Hospitals in Ontario and Alberta are provided with the incentive to discharge patients earlier. If you have authored this item and are not yet registered with RePEc, we encourage you to do it here.
As a means of achieving "goal congruence" within organizations, a "management control system" must be set up which ensures that patient care is achieved with optimal utilization of resources.
Although Ontario and Alberta have adopted different systems, the incentives appear to be the same. However strategies get implemented through management controls, organizational structure, human resources management and culture.
According to Kaplan, management controls are exercised on the basis of information received by the managers. The inclusion of non-financial measures has become an essential characteristic of current management control systems, to the point of becoming the main criterion in distinguishing different systems.
Doctors for the most part are "independent contractors" with privileges to practise in hospitals.