An Institutional Sociology Perspective of the Implementation of Activity Based Costing by Spanish Health Care Institutions

IESE Business School Working Paper No. 582

24 Pages Posted: 1 Mar 2006  

Ignacio Urrutia

University of Navarra, IESE Business School

Date Written: February 2005

Abstract

According to institutional sociology, hospitals will respond to external environmental pressures and adopt Activity-Based-Costing (ABC). This theory overemphasizes conformity and fails to consider the advantages of organizational non-conformance. A conflict of interests between physicians and management leads to physician resistance to accepting ABC. This paper investigates the Spanish government's response to this resistance by creating new public foundation hospitals, and involves a case study of the Alcorcon foundation hospital. Population ecology is offered as an explanation for the emergence of new entities as a result of inert existing entities' resistance to reform.

Keywords: Activity based costing, ABC implementation, Helath care,Institutional sociology, Spanish health care sector

Suggested Citation

Urrutia, Ignacio, An Institutional Sociology Perspective of the Implementation of Activity Based Costing by Spanish Health Care Institutions (February 2005). Available at SSRN: https://ssrn.com/abstract=884388 or http://dx.doi.org/10.2139/ssrn.884388

Ignacio Urrutia (Contact Author)

University of Navarra, IESE Business School ( email )

Avenida Pearson 21
Barcelona, 08034
Spain

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