Objectives A recent debate in health economics and outcomes research community
identified option value as one of the elements warranting consideration in the assessment of …

Given that engineering flexibility can potentially provide a competitive advantage, the
question then becomes: Precisely how valuable is this flexibility? However, traditional …

Medical devices have attained increasing importance in diagnosis and treatment in the
healthcare system in recent years due to technological advancements. Along with this …

We study the strategic relationship between hospital investment and provision of service
quality. We use a spatial competition framework and allow investment and quality to be …

In conditions of instability of financial and commodity markets, the implementation of long-
term projects with significant estimated payback periods involves not only long sources of …

Objectives The aim of this study was to investigate how the differences across the regional
reimbursement mechanisms and in particular the use of the DRGs impact on the level in the …

We present the application of real options analysis (ROA) to a managerial decision-making
problem. A case study was developed to illustrate the mathematical steps required to apply …

The cost of hospital care depends on the quality of the service, on the personal
characteristics of the patient, on the effort of the medical staff and on information asymmetry …

Purpose This survey explores the application of real options theory to the field of health
economics. The integration of options theory offers a valuable framework to address these …

From an economic perspective, large investments in medical equipment are justifiable only
when many patients benefit. Although rural hospitals play a crucial role locally, the …