The concept of economic security of the hospital: A new look at the levers of control

Despite a significant progress achieved in the healthcare sector during last decades, we need to admit the fact that many urgent problems remain unsolved even in well developed countries. Along with other major factors, economic causes of these problems hold a prominent position. It is then necessary to think about a need of shifting from a view of hospitals as ever being institutions existing by default in any society to a view of hospitals as organisations with an incorporated economic mechanism, adapted to social changes and relevant economic risks. With this regard, this paper seeks to incorporate the concept of economic security of the hospital into Simons’ LOC model used in hospital management. We provide a brief overview of the concept of economic security of the organization. We adjust this concept for hospital management considering the healthcare system as an economic system and taking main problems of the hospital and interests of stakeholders in the core of strategy development. Further, we accommodate the concept with the levers of control. The result of the paper is a revised Simons’ LOC model which provides a theoretical framework for further research on hospital management and serves a modified management instrument.