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Cost Efficiency in Primary Care Contracting: A Stochastic Frontier Cost Function Approach

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Author Info
Jaume Puig ()
Vicente Ortún ()

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Abstract

The principal aim of this paper is to estimate a stochastic frontier cost function and an inefficiency effects model in the analysis of the primary health care services purchased by the public authority and supplied by 180 providers in 1996 in Catalonia. The evidence from our sample does not support the premise that contracting out has helped improve purchasing cost efficiency in primary care. Inefficient purchasing cost was observed in the component of this purchasing cost explicitly included in the contract between purchaser and provider. There are no observable incentives for the contracted-out primary health care teams to minimise prescription costs, which are not explicitly included in the present contracting system.

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File URL: http://www.econ.upf.edu/docs/papers/downloads/719.pdf
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Publisher Info
Paper provided by Department of Economics and Business, Universitat Pompeu Fabra in its series Economics Working Papers with number 719.

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Date of creation: Jul 2003
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Handle: RePEc:upf:upfgen:719

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Web page: http://www.econ.upf.edu/

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Related research
Keywords: Primary health care; purchasing cost efficiency; frontier models;

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Find related papers by JEL classification:
H51 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Health
I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health

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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Rodriguez, Marisol & Scheffler, Richard M. & Agnew, Jonathan D., 2000. "An update on Spain's health care system: is it time for managed competition?," Health Policy, Elsevier, vol. 51(2), pages 109-131, March. [Downloadable!] (restricted)
  2. Jondrow, James & Knox Lovell, C. A. & Materov, Ivan S. & Schmidt, Peter, 1982. "On the estimation of technical inefficiency in the stochastic frontier production function model," Journal of Econometrics, Elsevier, vol. 19(2-3), pages 233-238, August. [Downloadable!] (restricted)
  3. Battese, G E & Coelli, T J, 1995. "A Model for Technical Inefficiency Effects in a Stochastic Frontier Production Function for Panel Data," Empirical Economics, Springer, vol. 20(2), pages 325-32.
  4. Giuffrida, Antonio & Gravelle, Hugh, 2001. "Measuring Performance in Primary Care: Econometric Analysis and DEA," Applied Economics, Taylor and Francis Journals, vol. 33(2), pages 163-75, February. [Downloadable!] (restricted)
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(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. David Becher & George Deltas & George Pinteris, 2006. "Reconsidering the degree of inefficiency of financial institutions," Proceedings, Federal Reserve Bank of Chicago, pages 223-240. [Downloadable!]
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This page was last updated on 2009-11-27.

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