The Dual Pyramid Organizational Structure, Research Paper Example

The dual pyramid organizational structure is unique to health care organizations due to the combination of administrative and medical under one roof.  That is, while most businesses are managed by one set of executives, hospitals typically boast two lines of command: 1) The executive line that is responsible for the hospital’s business performance; 2) The medical management line that is responsible for medical care given to patients.

This dual pyramid is necessary in a health care organization due to the complexities a hospital typically engages in.  For example, a hospital enters into negotiations to rent space, rent equipment, and seeks financing from a range of stakeholders.  While doctors are certainly well educated, they do not learn about these business issues in medical school; moreover, they probably do not have time to understand or deal with them during the course of practicing medicine.  As a result, business executives are tasked with managing the operational aspects of the hospital.  On the other hand, executives know little about medicine and are not in a position to understand if doctors are providing suitable care to patients. This dissonance in core competencies among hospital staff leads to the dual pyramid structure that essentially bifurcates responsibility based upon whether an individual is on the business side or on the medical side.

This type of business organization makes little sense in other industries: Indeed, in most other businesses there needs to be one direct line of management that is in charge of managing the business and making strategic decisions. Health care organizations, however, have a dual imperative to take care of the patient and, in some cases, to take care of the bottom line: thus, the dual pyramid structure is expected to remain a key feature of these organizations.

References

Liebler, J.G. & McConnell, C.R. Management principles for health professionals. Jones and Bartlett, 2004.