How one hospital broke its inflation fever

The Johns Hopkins Hospital has demonstrated that hospital costs can be decreased without governmental intervention (controls). From 1975 to 1978, the hospital inflation rate was cut by half. One key factor, according to Solomon, was a move to decentralize management which was accompanied by a detailed system for monitoring costs. Also instrumental were administration's consistent reminders to physicians and managers about keeping costs down. The hospital was reorganized from a system of clinical departments that behaved, says Solomon, like "fiefdoms" into 14 autonomous departments that function under their own budgets. Each department controls about 85% of its costs (up from 30%), and is set up to function "like a small business." A breakdown of where cost reductions took place shows a savings of $5 million in overhead and $1.5 million in malpractice claims (Hopkins self-insured). Individual departments have also achieved some dramatic reductions: the Department of Medicine decreased the number of laboratory tests ordered; and the Department of Gynecology and Obstetrics built a new facility with fewer beds than the old one.     

Issues in Growing a Family Business: A Strategic Human Resource Model

The conceptual literature on family businesses suggests that family businesses have difficulty managing their human resources, especially when it concerns a family member or the transition from the founder to the successor. The authors empirically examined the assumptions raised in the conceptual literature regarding whether family businesses were experiencing human resource problems in growing their business and what factors enabled or constrained the ability of their businesses to grow. The authors used in-depth interviewing to collect data in order to emphasize the depth of the issue. Using content analysis with subject matter experts coding the data, the authors sought to mine the richness of data. Finally, the authors analyzed the data using Elliot Jaques' Stratified Systems Theory as a model to examine the strategic human resource issues and to draw some tentative conclusions.     

Trade Unions and Consumerism

Public pension systems have long been a focus of special attention by neoclassical economics. In a context of intense aging processes, mainstream economists argue that the replacement of the pay-as-you-go pensions systems by unfunded individual savings accounts will have a positive impact, at a microeconomic and at a macroeconomic level, and will protect pension systems of the negative consequences of aging. However, these conclusions depend dramatically on the assumptions of rational expectations and perfect information. When we accept the existence of uncertainty, the presumed positive consequences of these reforms disappear, showing the advantages of pay-as-you-go over funded pension systems.     

Supply response of U.K. milk producers

Short‐run own‐price response elasticities are estimated from two samples of panel data for specialist dairy farms in the Northwest and Southwest of England. Although these farms are subject to milk marketing quotas, the free tradability of quotas enables them individually to adjust the output quite rapidly. Model specifications have been chosen to test the ability of panel data to directly reveal behavioral responses without the imposition of theoretical restrictions. Significantly, the two independent samples generate quite similar results, especially in terms of supply response measures. Stable and promising estimates are obtained with simultaneous models giving higher elasticities than single equation models.     

What happened after Bell spilled the acid?: Telecommunications history: a view through the literature

The article is an extensive review of the literature covering the history of telecommunications, primarily the telephone and telegraph. Much of the history itself is discussed in the process, including the politics of inventions, monopolies and anti-trust pressures, and industry interaction with government. The ignorance of many authors on the actual workings of the telephone is decried, and many sources for gaining an understanding of the technology are indicated.