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Are Hospitals Seasonally Inefficient? Evidence from Washington State Hospitals

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Author Info

  • Daniel Friesner
  • Matthew McPherson
  • Robert Rosenman

    ()
    (School of Economic Sciences, Washington State University)

Abstract

Efficiency measurement has been one of the most extensively explored areas of health services research over the past two decades. Despite this attention, few studies have examined whether a provider’s efficiency varies on a monthly, quarterly or other, sub-annual basis. This paper presents an empirical study that looks for evidence of seasonal inefficiency. Using a quarterly panel of general, acute-care hospitals from Washington State, we find that hospital efficiency does vary over time; however, the nature of this dynamic inefficiency depends on the type of efficiency being measured. Our results suggest that technical and cost efficiency vary by quarter. Allocative and scale efficiency also vary on a quarterly basis, but only if the data are jointly disaggregated by quarter and another, firm-specific factor such as size or operating status. Thus, future research, corporate decisions and government policies designed to improve the efficiency of hospital care need to account for seasonal trends in hospital efficiency.

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File URL: http://www.ses.wsu.edu/Research/rosenman_seasonal_efficiency%20_2_.pdf
File Function: First version, 2005
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Bibliographic Info

Paper provided by School of Economic Sciences, Washington State University in its series Working Papers with number 2006-3.

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Length: 33 pages
Date of creation: Feb 2006
Date of revision:
Handle: RePEc:wsu:wpaper:rosenman-2

Contact details of provider:
Postal: PO Box 646210, Pullman, WA 99164-646210
Phone: 509-335-5555
Fax: 509-335-1173
Web page: http://faculty.ses.wsu.edu/
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Related research

Keywords: repeated auction; seasonality; efficiency; hospitals; data envelopment analysis;

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References

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  1. Luis R. Murillo-Zamorano, 2004. "Economic Efficiency and Frontier Techniques," Journal of Economic Surveys, Wiley Blackwell, vol. 18(1), pages 33-77, 02.
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  7. Rodriguez-Alvarez, Ana & Fernandez-Blanco, Victor & Lovell, C. A. Knox, 2004. "Allocative inefficiency and its cost:: The case of Spanish public hospitals," International Journal of Production Economics, Elsevier, vol. 92(2), pages 99-111, November.
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  9. Prior, Diego, 2003. "Long- and short-run non-parametric cost frontier efficiency: An application to Spanish savings banks," Journal of Banking & Finance, Elsevier, vol. 27(4), pages 655-671, April.
  10. Jati Sengupta, 1998. "Stochastic data envelopment analysis: a new approach," Applied Economics Letters, Taylor & Francis Journals, vol. 5(5), pages 287-290.
  11. Robert Rosenman & Daniel Friesner, 2004. "Scope and scale inefficiencies in physician practices," Health Economics, John Wiley & Sons, Ltd., vol. 13(11), pages 1091-1116.
  12. Bruce Hollingsworth & P.J. Dawson & N. Maniadakis, 1999. "Efficiency measurement of health care: a review of non‐parametric methods and applications," Health Care Management Science, Springer, vol. 2(3), pages 161-172, July.
  13. Nikolaos Maniadakis & Emmanuel Thanassoulis, 2000. "Assessing productivity changes in UK hospitals reflecting technology and input prices," Applied Economics, Taylor & Francis Journals, vol. 32(12), pages 1575-1589.
  14. Sherman T. Folland & Richard A. Hofler, 2001. "How reliable are hospital efficiency estimates? Exploiting the dual to homothetic production," Health Economics, John Wiley & Sons, Ltd., vol. 10(8), pages 683-698.
  15. Valdmanis, Vivian, 1992. "Sensitivity analysis for DEA models : An empirical example using public vs. NFP hospitals," Journal of Public Economics, Elsevier, vol. 48(2), pages 185-205, July.
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Citations

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Cited by:
  1. Daniel L. Friesner & Matthew Q. McPherson & Robert Rosenman, 2010. "Are Hospital Pharmacies More Efficient if They Employ Nurses?," Economics Bulletin, AccessEcon, vol. 30(1), pages 139-156.
  2. repec:ebl:ecbull:v:30:y:2010:i:1:p:139-156 is not listed on IDEAS
  3. Rajitkanok Puenpatom & Robert Rosenman, 2008. "Efficiency of Thai provincial public hospitals during the introduction of universal health coverage using capitation," Health Care Management Science, Springer, vol. 11(4), pages 319-338, December.

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