Relationships between Organization Structure, Prices, and Motivation on the Effectiveness and Efficiency of Medical Entrepreneurial Ventures

Abstract

Two perspectives may define the emergence and evolution of medical entrepreneurship in the research sample - personal motivation and economic objectives. Starting with the assumption that a medical entrepreneur (defining him/her as a person who has evolved as an entrepreneur in health care delivery sector) is a vital service provider to the society by combining available health care resources and individual entrepreneurial skills, this paper tries to determine the underlying motivations, the eventual effectiveness of medical entrepreneurial ventures, their costs efficiencies while simultaneously maintaining their social objectives. The paper also discusses the effectiveness and efficiencies of health care delivery units, hereafter called firms, set up by medical entrepreneurs, along with the organization structure and the prices of products and services of the firms. Organization structure and pricing strategies derive the real motivation of such firms from the dual objectives - profit and social cause. Lastly, roles of regulations, legalities and tax incidences are summarized to determine their adequacy. A questionnaire based survey was conducted on a sample of medical entrepreneurs while limiting the scope to firms which provided hospitalization facilities only.