The impact of physician-hospital integration on hospital supply management

This study examines how organizational alignment between professionals-who act as surrogate buyers-- and the organizations in which they work, influence the supply management efficiency of the organization. Based on a cross-sectional sample of hospital data, we estimate random effects regression models to investigate the association between physician-hospital integration mechanisms and hospital supply efficiency. The results suggest that either professional hierarchy or bureaucratic pressures can improve supply management efficiency. In a sector of the economy characterized by escalating costs and uncertainty, the findings provide potential guidance for professional relationship strategy design to improve sector performance.