On The Impact Of Equity Incentives In Private Hospital On Firm Performance

The medical service market is expanding rapidly at present.Although the private hospitals get some political preference,most of the doctors are still concentrated in the public hospitals.How to inspire the human resource to realize the growth of firm performance becomes the key of the development of the private hospitals.A series of equity incentive measures implemented by Aier Eye Hospital in private hospitals and their impact on the firm performance have attracted the author's attention.This paper chooses Aier Eye Hospital as the object of study to explore why Aier Eye Hospital chooses stock incentive as its main incentive measures and realize the rapid growth of its performance.This paper adopts case study,firstly introduces the significance and background of the topic and constructs a theoretical framework,secondly analyzes the design and implementation of equity incentive plan in Aier Eye Hospital,thirdly illustrates its impact on the firm performance and evaluates as well as improves it,lastly concludes the results and inspirations of the case study.One of the theoretical significances is that the impact of senior managers and technical personnel on private hospital performance is different.By granting equity to executives and core technologists,the company aligns the interests of shareholders with those of company.This promotes the interests of executives and makes them work harder,also encourage core technologists to contribute the intellectual capital and knowledge they possess in order to realize the effect of stock incentives on enterprise performance.Therefore,equity incentive,core human talent and firm performance should exist the relationship between the interaction.This paper also proves that the private enterprises should use equity incentive plan to meet the needs of human capital.At the same time,on the relationship between stock ownership incentive and enterprise performance,this paper supports the view that stock ownership incentive can promote enterprise performance through case study,and proves the existence of incentive aftereffect.One of the practical significances is to improve the equity incentive scheme of Aier Eye Hospital and provide a reference for private medical industry.Private hospitals can introduce different indexes to form and perfect the index system,set different levels under the same index,and enlarge the corresponding incentive results of different levels when designing the equity incentive plan Also the relative performance ranking can be used to remove the uncertainty that the agents faces together,so that the client can judge the agent's effort more accurately,and the design of equity incentive is more targeted.This article also has certain enlightenment to the supervisory policy.The favorable state policies for private hospitals need to be further tilted,which is mainly reflected in supporting private hospitals' own talent training models,such as strengthening the continuing education of medical and management talents,establishing learning organization and promoting joint education.In view of the enterprise own innovation incentive measure,the policy may carry on the supervision and the restriction to it.At the same time,we should strengthen the supervision and restriction of innovation.The innovation of this paper is mainly based on the lack of core talents in private hospitals,which shows that the path between stock ownership incentive and enterprise performance is different for different core talents.At the same time the use of tournament theory breaks the traditional boundaries.