Heterogeneity in Hospitals' Responses to a Financial Reform: A Random Coefficient Analysis of The Impact of Activity-Based Financing on Efficiency
AbstractThe paper examines the heterogeneity with respect to the impact of a financial reform - Activity Based Financing (ABF) - on hospital efficiency in Norway. Measures of technical efficiency and of cost-efficiency are considered. The data set is from a contiguous ten-year panel of 47 hospitals covering both pre-ABF years and years after its imposition. Substantial heterogeneity in the responses, as measured by both estimated and predicted coefficients, is found. Rank correlations between the estimated/predicted coefficients of the ABF dummy and the pre-ABF/post-ABF efficiencies are examined. Overall, improvement seems to be more pronounced in technical efficiency than in cost-efficiency.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 8169.
Date of creation: 2006
Date of revision:
Health Econometrics; Panel Data; Hospital Efficiency; Activity-Based Financing; Random Coefficients; Heterogeneity; Rank Correlation;
Other versions of this item:
- Eric, BiÃ¸rn & Hagen, Terje P. & Iversen, Tor & Magnussen, Jon, 2009. "Heterogenety in hospitals responses to a financial reform: A random coefficient analysis of the impact of activity-based financing on efficiency," HERO On line Working Paper Series, Oslo University, Health Economics Research Programme 2006:9, Oslo University, Health Economics Research Programme.
- H51 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Health
- I12 - Health, Education, and Welfare - - Health - - - Health Production
- I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
- C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
- C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
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