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Using composite indicators to evaluate the efficiency of health care system

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  • Jenni P䤫könen
  • Timo T. Sepp䬤

Abstract

This article produces a system-level composite indicator on population health in publicly provided primary health care. We first summarize information from various indicators of care by principal component analysis (PCA). We then regress the costs of care against these indicators to evaluate whether they are related. The existing health status indicator provides a point of comparison. Our results suggest that PCA can be used to extract information efficiently and thus to reduce the dimensionality of data. Furthermore, the use of the existing health status indicator to estimate cost-efficiency leads to invalid inference on overall efficiency, while the use of composite indicator significantly reduces the bias.

Suggested Citation

  • Jenni P䤫könen & Timo T. Sepp䬤, 2014. "Using composite indicators to evaluate the efficiency of health care system," Applied Economics, Taylor & Francis Journals, vol. 46(19), pages 2242-2250, July.
    • Handle: RePEc:taf:applec:v:46:y:2014:i:19:p:2242-2250
    DOI: 10.1080/00036846.2014.899675
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    1. Mark McClellan & Douglas Staiger, 1999. "The Quality of Health Care Providers," NBER Working Papers 7327, National Bureau of Economic Research, Inc.
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    Cited by:

    1. Fabio Pammolli & Francesco Porcelli & Francesco Vidoli & Guido Borà, 2014. "La spesa sanitaria delle Regioni in Italia - Saniregio 3," Working Papers CERM 02-2014, Competitività, Regole, Mercati (CERM).
    2. Fabio Pammolli & Francesco Porcelli & Francesco Vidoli & Monica Auteri & Guido Borà, 2017. "La spesa sanitaria delle Regioni in Italia - Saniregio2017," Working Papers CERM 01-2017, Competitività, Regole, Mercati (CERM).
    3. Fabio Pammolli & Francesco Porcelli & Francesco Vidoli & Guido Borà, 2015. "La spesa sanitaria delle Regioni in Italia - Saniregio 2015," Working Papers CERM 01-2015, Competitività, Regole, Mercati (CERM), revised 04 Jan 2016.
    4. Francesco Vidoli & Elisa Fusco & Claudio Mazziotta, 2015. "Non-compensability in Composite Indicators: A Robust Directional Frontier Method," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 122(3), pages 635-652, July.

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