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.