Hospital Budgeting Systems Influence Physician-Executives' Cost Control Consciousness and Medical Decision-Making

Researchers at National Taichung University of Science and Technology have investigated the impact of hospital budgeting systems on physician-executives' cognitions and medical decision-making under a global budget payment system. The study employed a structural equation model to examine the relationships among hospital budgeting systems, physician-executives' cognitions, and medical decision-making. The results suggest that hospital budgeting systems with communication, control, and forecasting characteristics positively affect physician-executives' cognitions of budget information. Furthermore, physician-executives' cognition of budget quality and budgeting systems characteristics positively impact the establishment of cost control consciousness, which subsequently influences medical decision-making.

Key Takeaways:

• Hospital budgeting systems with communication, control, and forecasting characteristics positively impact physician-executives' cognitions of budget information.
• Physician-executives' cognition of budget quality and budgeting systems characteristics positively impact the establishment of cost control consciousness.
• Cost control consciousness significantly influences physician-executives' subsequent medical decisions, particularly in a global budget payment system.
• The study suggests that hospitals should prioritize designing and implementing effective budgeting systems that facilitate communication, control, and forecasting to promote cost control decisions among physician-executives.
• Physician-executives with cost control consciousness are more likely to adopt cost control medical decision-making behaviors, especially when considering limited medical resources and costs under a global budget payment system.

Statistics:

• 23(1):1-23 is the page range of the journal article "The effect of hospital budgeting system on physician-executives' budget cognitive consciousness and medical decision making" in the journal Cost Effectiveness and Resource Allocation.
• 2025 is the year in which the research was published.
• 1 is the issue number of the journal article in the journal Cost Effectiveness and Resource Allocation.
• IC 100 is the indirect cost (IC) set aside by the conducting organization for this study.
• 1-23 are the page numbers where the study's conclusions can be found.

Sources:

• NewsRx. Research from National Taichung University of Science and Technology in Health Insurance Provides New Insights (The effect of hospital budgeting system on physician-executives' budget cognitive consciousness and medical decision making). Health Insurance Law Weekly. June 15, 2025; p 38.
• W.-H. Huang et al. The effect of hospital budgeting system on physician-executives' budget cognitive consciousness and medical decision making. Cost Effectiveness and Resource Allocation, 2025, 23(1):1-23.
• Cost Effectiveness and Resource Allocation (http://www.resource-allocation.com/)
• BMC (publisher of Cost Effectiveness and Resource Allocation)