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Note---On Making the Illustration Illustrative: A Comment on Banker, Conrad and Strauss

Author

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  • Richard G. Frank

    (School of Hygiene and Public Health, The Johns Hopkins University, Baltimore, Maryland 21205)

Abstract

Hospitals are firms which produce multiple outputs. Taking account of the multiproduct nature of the firm is important for appropriate analyses of hospital technology to be conducted. This paper comments on a recent study which was aimed at comparing two methods of analyzing hospital costs which incorporate multiple outputs and inputs. The comment focuses on how outputs are defined and problems related to aggregation of outputs. Limitations on the ability to interpret results reported by Banker, Conrad and Strauss are identified.

Suggested Citation

  • Richard G. Frank, 1988. "Note---On Making the Illustration Illustrative: A Comment on Banker, Conrad and Strauss," Management Science, INFORMS, vol. 34(8), pages 1026-1029, August.
    • Handle: RePEc:inm:ormnsc:v:34:y:1988:i:8:p:1026-1029
    DOI: 10.1287/mnsc.34.8.1026
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    Cited by:

    1. Reuben Elan & Verma Bharat Bhushan & Bhat Ramesh, 2001. "Hospital Efficiency: An Empirical Analysis of District and Grant-in-Aid Hospitals in Gujarat," IIMA Working Papers WP2001-07-05, Indian Institute of Management Ahmedabad, Research and Publication Department.

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