Operational Logic Of Urban Private Institutions For The Aged

Urban private institutions for the aged, which is characterized as welfare or non-profitorganization, must embody their function of social service and value of public welfare．However,for being involved of private capital , they must follow the market law and pursueeconomic efficiency in the economic reformation of marketization. These two institutionalconstraints are contradictory with private institutions for the aged and private institutions forthe aged is under the dual pressures of welfare and profit, so their realization of theirobjectives and functions are affected.This thesis selected a private institution for the aged of the central district of Jinan——Xingfujiayuan Nursing home. The author tries to apply new institutionalism organizationaltheory to the logical analysis for the operation of private institutions for the aged. Throughdoing document research and field studies, the author examines the operation of privateinstitutions for the aged in the institutional environment and the technological environment,and analyzes their relevant measures under dual pressures of welfare and profit. The authoralso attempts to demonstrate the contradictory relations between the pursuit of economicefficiency and the welfare pressure caused by institutional environment in the privateinstitutions for the aged, and how these two factors affect each other.The conclusion shows that: in the institutional environment, private institutions for theaged as the private non-enterprise social organizations, on the one hand, they lack therestraints of corresponding institution and law and policy-related benefits. On the other hand,the government demands the welfare services, and the private institutions for the aged need toassume the responsibility of public services on the premise of not obtaining the policy-relatedbenefits. The institutional environment has caused their low economic efficiency anddecreased the profits, and the private institutions for the aged can not provided a furthercapital injection, so they are in trouble. Even they are awkward that they could not do in realprivate non-enterprise. In the technological environment, the founder of the privateinstitutions for the aged has dual purpose of the pursuit of economic efficiency and servicesfor the elderly. Private institutions for the aged attempt to build their own softwareenvironment to promote economic benefits, but initial investment is too large to care aboutthe follow-up fund, and causes the inadequate in professional services and standardization．Basically, institutional defects cause the dual weakness of private institutions for the aged in public functions and economic functions.How to perfect the institutional environmentis the key to healthy development of private institutions for the aged. Main measures are: todevelop long-term planning, to increase investment, to strengthen the management systems,and introduce the chain operations.