Organisational Behaviour of Health Care

The insights provided by the theories of organisational behaviour emphasise the need for the establishment of institutional frameworks which provide for measurement yardsticks to facilitate governance. Such yardsticks should assist in the measurement of performance which should be among the main criteria for assessment. If pure competition is to prevail for producing efficient services then the market conditions should be such as to allow for easy entry and exit of firms. Any barriers present to obstruct the smooth functioning of the firms should be eliminated for which suitable institutional mechanisms must be evolved. In order to achieve this, policy promotion packages with features of contestability and measurability needs to be evolved. Enabling institutional frameworks must be developed by the state in order that factors conducive for efficient functioning of market are established. Most goods and services have some degree of market imperfection in terms of reduced contestability and measurability. There are various instruments which the governments use to deal with such situations. In order of increasing intrusiveness, some of these measures include:

(i) Requiring information disclosure;

(ii) Introducing regulations;

(iii) Contracting;

(iv) Subsidies or direct financing; and

(v) Public production.