Chia-Ching Cho, AnAn Chiu, Shaio Yan Huang and Shuen-Zen Liu
As the rise in expenditures will be even faster when the baby-boom generation soon reaches healthcare-dependent ages, healthcare providers are facing cost management decision of…
Abstract
Purpose
As the rise in expenditures will be even faster when the baby-boom generation soon reaches healthcare-dependent ages, healthcare providers are facing cost management decision of achieving superior performance. Taiwan provides a unique environment that the dialysis service providers face only one medical buyer. The purpose of this paper is to discuss cost factors of dialysis facilities.
Design/methodology/approach
This study provides a comprehensive analysis of factors influencing the dialysis costs using the data collected from a large renal clinic chain at Taiwan. The multiple linear regression analysis is employed to examine the factors influencing dialysis costs. The research sample composed of 1,255 patients is collected from 16 dialysis centers in Taiwan.
Findings
The results indicate that the treatment costs of dialysis are influenced by managerial factors including capacity utilization rate (CUR), the percentage of shares held by the owners and the geographical location of clinics (LC). The findings assist renal clinics to identify the parts critical to the cost control. Our results indicate that medical variable costs for performing the dialysis treatments are significantly influenced by such managerial factors as CUR, the percentage of owners’ shares holding and LC.
Practical implications
By identifying a comprehensive set of costs drivers for dialysis services, this study provides useful information for both health providers and policy makers. In specific, the result assists these providers to consider the utilization of better mechanisms/instruments to control costs by increasing the operational efficiency and achieving the economies of scale.
Originality/value
This paper contributes to exploring costs drivers that are generally absent from the extant literature. The result suggests that the regulators should be aware that the dialysis providers may reject costly patients. Hence, to establish the appropriate monitoring mechanisms to prevent such incidence is important. Finally, many other countries in addition to Taiwan also have a similar practice as national health insurances or services (e.g. Medicare in the USA or National Health Service in the UK). Those health systems may all face a similar cost control issues for handling end-stage renal disease patients. The analysis can help health systems worldwide to better design the reimbursement rates to account for the differences existed in dealing with the dialysis treatment costs.
Details
Keywords
The purpose of this study is to investigate whether hiring a high-quality auditor (i.e. industry specialist) depends on corporate governance indicators after controlling a…
Abstract
Purpose
The purpose of this study is to investigate whether hiring a high-quality auditor (i.e. industry specialist) depends on corporate governance indicators after controlling a different level of agency conflicts (ACs).
Design/methodology/approach
This paper uses logistic regressions on 12,449 firm-year samples of Taiwanese public companies from 1998 to 2011 by grouping the samples into three categories (i.e. low, medium and high AC).
Findings
The results show that the corporate governance indicators can explain the decision of auditor selection only in low and medium AC groups, which suggest that there may be a complementary relationship between external (i.e. auditors) and internal governance when the ACs are mild.
Originality/value
The paper contributes to the ongoing debate between the complementary and substitutable effects. When the internal ACs are controlled, the internal governance and auditor selection are complemented.
Details
Keywords
Hsuan‐Lien Chu, Chia‐Ching Cho and Shuen‐Zen Liu
This paper aims to investigate the performance effects of an incentive plan that links buyers' compensation to financial measures, namely sales and gross margin, in the retail…
Abstract
Purpose
This paper aims to investigate the performance effects of an incentive plan that links buyers' compensation to financial measures, namely sales and gross margin, in the retail industry. It seeks to examine the issue using field data obtained from the 3C (computers, communications, and consumer electronics) company, the largest electronics chain store business in Taiwan.
Design/methodology/approach
In addition to t‐tests, the authors use a multiple regression model to examine the impact of the buyer incentive plan on purchasing performance.
Findings
It was found that the gross margin return on inventory investment (GMROI), the most critical purchasing performance measure in retailing, deteriorated after implementing the incentive plan. Further analysis showed that although sales and gross margins increased as a result of the plan, the benefits were completely offset by a significant decrease in inventory turnover.
Research limitations/implications
This study has two limitations. First, the case study involved a specific retail chain. Thus, the extent that the results can be generalized to other organizations or other industries has yet to be explored. Second, to obtain a more comprehensive dataset and more observations, procurement team data was used instead of individual buyer data to measure the purchasing performance.
Practical implications
Managers should be aware of possible negative impacts when they design incentive plans, e.g. dysfunctional behavior among employees.
Originality/value
An incentive plan should incorporate all critical components related to buyer performance if there is to be improvement in terms of the key performance measures. The paper contributes to the literature by providing empirical evidence about the appropriateness of the performance measures used in buyer incentive plans designed for the retail industry.