A Research of Private Hospitals Transforming to Medical Corporation Aggregate

In 2004, the Medical Care Act added medical corporation aggregate system that offered opportunities for private medical institutes to transform into medical corporation aggregates. The system seemed to be the solution for private hospitals to solve their current problems. However, why the hospitals that applied for transformation have not reached the expectation yet? Is it because there are problems existing in the related regulations that lower the willingness for private hospitals to be transformed? Or is it because private hospitals are considering what issues or managerial difficulties they will face, so they are still estimating the risks? The research is based on some Medical Corporation Aggregate which has been operated for almost one year and is the successful example of the transformation. The case study focused on its transformation experiences while examining its reasons to decide the transformation and the process, problems, and solutions during the transformation in regard to the hospital’s background, partnerships, and other factors. The research will also reveal its practical experiences during the one-year operation. The study tries to visualize the development of the organization and the process of decision making. Then it will research into the hospital’s structure in the past and consider the reasons, process, and difficulties during its transformation to a medical corporation aggregate. The results of the research can serve as the reference for other private hospitals that plan to do so.fter interviewing with the research target, it was found that due to a lack of previous examples of hospital transformation, there are various problems concerning the procedure and the completeness of legislation, which resulted in the elongation of transformation. In the coming year after the transformation, the hospital has been influenced to reform its organization structure, but the risks in medical argument have been reduced, the capital resources have been expanded, and the number of investors who planned to buy its shares has thus increased. The current laws have definite regulations to foreign investment that a hospital can effectively lower the rents through its multi-faceted management and appropriate structural planning. It can also consider integrating former partner private clinics into the aggregate for sustainable profits. astly, the research also conducts discussion and amendment suggestions to dubious explanations existing in current regulations. It exemplifies the current development status of for-profit hospitals in the U.S. and suggests comments to the execution of medical corporation aggregate system based on the country’s practical experiences and problems. This should prevent for-profit hospitals from sacrificing the rights of consumers and any behaviors that induce them to consume for the purpose of making profits from them. he research hopes that for-profit medical corporation aggregates in Taiwan can bear in mind that medical care is a public welfare establishment and should keep contributing their efforts in improving the medical care quality and the rights of patients for a win-win situation between the two sides.