10.2190/J4R9-VH9M-TE7D-M642 J4R9VH9MTE7DM642 2 Priority-Based Marginal Resource Allocation Using Competitive Subsystems 101 113 20020509 20020509 20020509 20020509 J4R9VH9MTE7DM642.pdf http://baywood.metapress.com/link.asp?target=contribution&id=J4R9VH9MTE7DM642 2 Jack L. Stout Arkansas Health Systems Foundation In the design of Arkansas' Emergency Medical Services System, extensive application and integration of several aspects of systems theory have been employed. This paper focuses particularly upon the application of systems theory to the design and operation of the management subsystem. Of particular interest is the use of function analysis as a basis for: a) subsystem definition and structure, b) differentiated management authority, c) program budgeting employing a competitive priority-based marginal resource allocation technique, and d) performance contracting. Leonard C. Silvern, <i>Systems Engineering Applied to Training</i>, Gulf Pub. Co., Houston, Texas. 1972. Ervin Laslo, <i>The Relevance of General Systems Theory</i>, George Braziller, Inc., New York, N. Y., 1972. Peter Vanderwicken, "Collegial" Management Works at Jim Walter Corp., <i>Fortune</i>, p. 115. March, 1973.