Some scholars advocate for health care organizations designed around the principles of volume and focus, while others suggest that the complexity of patient care renders this approach to organizing care inefficient (and ineffective). This article attempts to reconcile these views, drawing on the idea of organizational capabilities as knowledge integration to motivate an empirical examination of the extent to which the efficiency benefits of hospital volume and focus depend on the degree of patient comorbidity. In doing so, the article has two aims: (a) to shed light on both the benefits and limitations of volume and focus as organizing principles and (b) to contribute to our understanding of the implications of comorbidity for the organization of health care delivery. Using data on U.S. hospitals, the author finds evidence that the efficiency benefits of volume and focus are diminishing in the level of patient comorbidity.
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