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Measuring hospital cost efficiency with panel data models

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Author Info
Miika Linna (National Research and Development Centre for Welfare and Health, Helsinki, Finland)
Abstract

This paper investigated the development of hospital cost efficiency and productivity in Finland in 1988-1994 using a comparative application of parametric and non-parametric panel models. Stochastic cost frontier models with a time-varying inefficiency component were used as parametric methods. As non-parametric methods various DEA models were employed to calculate efficiency scores and the Malmquist productivity index.

The results revealed a 3-5% annual average increase in productivity, half of which was due to improvement in cost efficiency and half due to technological change. The results by parametric and non-parametric methods compared well with respect to individual efficiency scores, time-varying efficiency and technological change. The state subsidy reform of 1993 did not seem to have any observable effects on the hospital efficiency. © 1998 John Wiley & Sons, Ltd.

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Publisher Info
Article provided by John Wiley & Sons, Ltd. in its journal Health Economics.

Volume (Year): 7 (1998)
Issue (Month): 5 ()
Pages: 415-427
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Handle: RePEc:wly:hlthec:v:7:y:1998:i:5:p:415-427

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Web page: http://www3.interscience.wiley.com/cgi-bin/jhome/5749

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  1. Brigitte Dormont & Carine Milcent, 2004. "Tarification des hôpitaux:la prise en compte des hétérogénéités," Annales d'Economie et de Statistique, ADRES, issue 74, pages 03, Avril-Jui. [Downloadable!]
  2. Gian Paolo Barbetta & Gilberto Turati & Angelo Zago, 2004. "Behavioral Differences Between Public and Private Not-For-Profit Hospitals in the Italian National Health Service," Working Papers 12, Università di Verona, Dipartimento di Scienze economiche. [Downloadable!]
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  3. Martine M. Bellanger & Zeynep Or, 2008. "What can we learn from a cross-country comparison of the costs of child delivery?," Health Economics, John Wiley & Sons, Ltd., vol. 17(S1), pages S47-S57. [Downloadable!]
  4. Annika Herr, 2008. "Cost and technical efficiency of German hospitals: does ownership matter?," Health Economics, John Wiley & Sons, Ltd., vol. 17(9), pages 1057-1071. [Downloadable!]
  5. Kalyan Chakraborty & John Poggio, 2008. "Efficiency and Equity in School Funding: A Case Study for Kansas," International Advances in Economic Research, Springer, vol. 14(2), pages 228-241, May. [Downloadable!] (restricted)
  6. Pinar Guven Uslu & Thuy Pham Linh, 2008. "Effects of Changes in Public Policy on Efficiency and Productivity of General Hospitals in Vietnam," Working Papers 08-30, Centre for Competition Policy, University of East Anglia. [Downloadable!]
  7. Maija-Liisa Järviö & Kalevi Luoma, 2000. "Productivity Changes in Finnish Health Centres: A Malmquist Index Approach," Discussion Papers 218, Government Institute for Economic Research Finland (VATT). [Downloadable!]
  8. Annika Frohloff, 2007. "Cost and Technical Efficiency of German Hospitals – A Stochastic Frontier Analysis," Ruhr Economic Papers 0002, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen. [Downloadable!]
  9. Roxani Karagiannis & Michalis Hatziprokopiou, 2007. "Measuring and explaining technical efficiency of Greek public hospitals," Discussion Paper Series 2007_04, Department of Economics, University of Macedonia, revised Dec 2007. [Downloadable!]
  10. Medhi Farsi & Massimo Filippini, 2006. "Effects of ownership, subsidization and teaching activities on hospital costs in Switzerland," Quaderni della facoltà di Scienze economiche dell'Università di Lugano 0606, Biblioteca universitaria di Lugano (University Library of Lugano). [Downloadable!]
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  11. Kathleen Carey, 2000. "A multilevel modelling approach to analysis of patient costs under managed care," Health Economics, John Wiley & Sons, Ltd., vol. 9(5), pages 435-446.
  12. António Afonso & Sónia Fernandes, 2008. "Assessing Hospital Efficiency: Non-parametric Evidence for Portugal," Working Papers 2008/07, Department of Economics at the School of Economics and Management (ISEG), Technical University of Lisbon.. [Downloadable!]
  13. Brigitte Dormont & Carine Milcent, 2004. "The sources of hospital cost variability," Health Economics, John Wiley & Sons, Ltd., vol. 13(10), pages 927-939. [Downloadable!]
  14. Juha Laine & Miika Linna & Unto Häkkinen & Anja Noro, 2005. "Measuring the productive efficiency and clinical quality of institutional long-term care for the elderly," Health Economics, John Wiley & Sons, Ltd., vol. 14(3), pages 245-256. [Downloadable!]
  15. Michael D. Rosko, 2001. "Cost efficiency of US hospitals: a stochastic frontier approach," Health Economics, John Wiley & Sons, Ltd., vol. 10(6), pages 539-551. [Downloadable!]
  16. Antonio Giuffrida and & Hugh Gravelle, . "Measuring Performance in Primary Care: Econometric Analysis and DEA," Discussion Papers 99/36, Department of Economics, University of York. [Downloadable!]
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  17. C. L. Chua & Alfons Palangkaraya & Jongsay Yong, 2009. "Hospital Competition, Technical Efficiency, and Quality," Melbourne Institute Working Paper Series wp2009n16, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne. [Downloadable!]
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