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Scale Economies in the Delivery of Medical Care: A Mixed Integer Programming Analysis of Efficient Manpower Utilization

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  • Fredrick L. Golladay
  • Marilyn E. Manser
  • Kenneth R. Smith

Abstract

This paper presents an activity analysis model of primary medical care which, through the use of integer constraints, captures both the technology of ambulatory care and the institutional restriction that labor inputs must be employed in discrete units. The result is that staffing patterns and optimal choice of techniques depend on the scale of practice. Empirical experiments demonstrate this relationship and, furthermore, reveal that introduction of physician extenders into the medical care system increases the scale at which economies of staffing are obtained and raises the diseconomies of suboptimal practice.

Suggested Citation

  • Fredrick L. Golladay & Marilyn E. Manser & Kenneth R. Smith, 1974. "Scale Economies in the Delivery of Medical Care: A Mixed Integer Programming Analysis of Efficient Manpower Utilization," Journal of Human Resources, University of Wisconsin Press, vol. 9(1), pages 50-62.
    • Handle: RePEc:uwp:jhriss:v:9:y:1974:i:1:p:50-62
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    Cited by:

    1. Fred Goldman & Michael Grossman, 1982. "The Production and Cost of Ambulatory Medical Care In Community Health Centers," NBER Working Papers 0907, National Bureau of Economic Research, Inc.

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