A Study on Networking Effects of Financial Leverage in Middle-Sized Hospitals

Recently, Korean medium-sized medical organizations require innovative strategies. Network-driven concerns in Korean medical organization have been a front burner issue to enhance economic and managerial efficiencies. Effective network-driven collaboration depends upon effective processes and economics strategies among medical providers group. From this motivation, we studied and provided the systems' theoretical background and networked hospital system structures. The aim of suggested research model in this paper is to overcome demerit of stand-alone medium-sized hospitals and analyze a system dynamics model to measure managerial performances. The developed system dynamics model is to quantify the effects of network strategy based on the historical financial data of real-life hospitals network experiences. The network effects are resulted in efficiencies and effectiveness enhancements in competitiveness through advertisement and effective education system. The simulations of system dynamics results can explain the improvement in financial outcome by joining in the network group. The network effects are shown more effective in dental hospital than other groups. In conclusion, it is expected that network effects have a critical influence of managerial, marketing, and medical collaboration performance for any type of medical hospitals.