Max Weber, the grandfather of organizational theory, recognized
the close association between health care organizations and law.
When he introduced the concept of a legal–rational
bureaucracy, he used hospitals and clinics to illustrate it.
Today, there is little doubt that healthcare organizations are
“law-saturated,” if not always fully compliant with
the law. Like Weber's legal–rational bureaucracies,
healthcare organizations have highly formalized rules and procedures.
They pay a great deal of attention to legal criteria in decisionmaking,
and some have entire departments devoted to legal risk management.