Physician-Hospital Exchanges: The moderating effects of the Chief Medical Officer. Trybou J., Gemmel P., Annemans L. Abstract: Context: Because of continuously rising healthcare expenditures and concerns about the quality of care, hospitals find themselves at the locus of the reform debate. Against this background, hospital executives are charged with the development of organizations in which high-quality care is efficiently delivered in an increasingly competitive environment. Physicians hold a centrally important function in hospitals and are critical to hospitals’ organizational success. In this study we focus on the influence of medical leaders on physicians’ perceptions of physician-hospital exchanges. More precisely, we address the quality of the relationship between self-employed physicians and the Chief Medical Officer as a potential moderator. Methods: A quantitative cross-sectional survey was conducted on 130 self-employed physicians practicing at 6 Belgian hospitals (17.1 % response rate). To measure economic exchange the concepts of Distributive Justice (DJ) and Procedural Justice (PJ) were applied to the contractual relationship between physician and hospital. Noneconomic exchange was conceptualized ad measured by the construct of the Psychological Contract. A distinction was made between an administrative and a professional dimension. Our outcomes comprise key organizational attitudes (satisfaction, affective commitment and intention to leave) and two types of organizational citizenship behaviour: Direct Personal Participation (DPP) and Indirect Stimulating Involvement (ISI) when hospital improvement initiatives are considered. The moderating role of the quality of exchange with the Chief Medical Officer (LeaderMember eXchange CMO) in the relationships of (distributive and procedural) organizational justice and (administrative and professional) psychological contract breach and physicians’ key organizational attitudes and OCBs was assessed. Results: Our results showed a relationship between both psychological contract breach and organizational justice and physicians’ organizational attitudes. In contrast to organizational justice, no relationship was found between psychological contract breach and OCBs. Quality of exchange with the CMO buffered the negative effect of psychological contract breach and reinforces the positive effects of organizational justice with respect to physicians’ organizational attitudes. When OCBs are considered, only a relationship with organizational justice was present which was moderated by the quality of exchange with the CMO. Remarkably, physicians who experience low levels of LMX were less affected by perceptions of justice, whereas the work behaviors decreased as justice decreased among physicians that experience high levels of LMX. A detailed overview of the results is provided in the appendix. Discussion: Our results demonstrate that physician leadership is of major importance to physician-hospital exchanges. Both economic and noneconomic aspects are important when considering physicians’ key organizational attitudes. However, with respect to organizational citizenship only the economic dimension of exchange was found to be significant. The reciprocity dynamic can be enhanced by high-quality exchange with the CMO. Our findings highlight the need for additional research. In particular, since different types of OCB exist it would be valuable to consider the potential differences between the types of extra-role behavior. More specifically, given the centrally important clinical role of medical doctors and their corresponding impact on hospital performance this presents an interesting avenue for future research. Keywords: Organizational Justice, Psychological Contract, Hospital-Physician Relationships, Satisfaction, Affective Commitment, Intention to Leave, Chief Medical Officer Jeroen Trybou is academic assistant at Ghent University. His PhD research focuses on the hospital-physician relationship. He acts as advisor for several Health Care organizations and is guest lecturer Health Care Management & Policy at the University-College Brussel. His key research interests include organizational and financial aspects of Health Care delivery. Paul Gemmel is professor of Health Care & Service Management at the Faculty of Economics and Business Administration of Ghent University. He is also Senior Research Fellow at the Vlerick Leuven Ghent Management School. He has published widely in the area of Health Care and Service Management. Lieven Annemans is full professor of Health Economics (I-CHER) at Ghent University and Brussels University (VUB). He is past-president of the International Society of Pharmacoeconomics and Outcomes Research (ISPOR) and is currently a member of the Flemish strategic council for health and wellbeing. His research focuses on Health Economic evaluations and Health Policy. He has published more than 150 peer-reviewed articles in this domain.