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Administration above Administrators: The Changing Technology of Health Care Management

Author

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  • Abe Dunn
  • Joshua D. Gottlieb
  • Adam Hale Shapiro

Abstract

This paper measures the costs and types of administrative inputs in health care. We use data on labor and nonlabor inputs by industry and categorize them as administrative or not. We find that nonlabor inputs are a critical part of administrative spending, over and above labor inputs. Trends in nonlabor administrative input spending have differed dramatically from that of labor input spending for hospitals over the last 20 years. Hospitals have substituted away from office workers and toward externally purchased inputs. The share of managers and technical workers in administration has grown. The technology of health care administration is changing.

Suggested Citation

  • Abe Dunn & Joshua D. Gottlieb & Adam Hale Shapiro, 2020. "Administration above Administrators: The Changing Technology of Health Care Management," AEA Papers and Proceedings, American Economic Association, vol. 110, pages 274-278, May.
    • Handle: RePEc:aea:apandp:v:110:y:2020:p:274-78
    DOI: 10.1257/pandp.20201031
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    Cited by:

    1. Maggie Shi, 2023. "Monitoring for Waste: Evidence from Medicare Audits," NBER Working Papers 31559, National Bureau of Economic Research, Inc.

    More about this item

    JEL classification:

    • I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health

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