An institutional sociology perspective of the adaptation of activity based costing by spanish health

Per institutional sociology hospitals will respond to external environmental pressures and adopt Activity-Based-Costing (ABC). This theory overemphasizes conformity and failures to consider the advantages of organizational non-conformance. A conflict of interests between physicians and management leads to physician resistance of accepting ABC. This paper investigates the Spanish government´s response to this resistance by creating new public foundation hospitals, and involves a case study of foundation hospital Alcorcón. Population ecology is offered as an explanation for the emergence of new entities as a result of inert existing entities resistance to reform.