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Efficiency and Administrative Costs in Primary Care

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  • Antonio Giuffrida
  • Hugh Gravelle
  • Matthew Sutton

Abstract

We construct a simple model of the determinants of administrative managerial effort and apply it explain the doubling of the cost of administering primary care in England in real terms between 1989/90 and 1994/5 following the introduction of the internal market. We find that the main cost driver was the number of GPs, that there are economies of scale but not economies of scope in administration, and that fundholding appeared to increase administrative costs. Most the increase in administrative cost over the period could not be explained by the change in the cost drivers or fundholding, suggesting that the recent abolition of fundholding may do little to reduce primary care administrative costs.

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Paper provided by Department of Economics, University of York in its series Discussion Papers with number 99/27.

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Handle: RePEc:yor:yorken:99/27

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Keywords: primary care; administrative costs; efficiency measurement; performance indicators.;

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References

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Cited by:
  1. Murillo-Zamorano, Luis R. & Petraglia, C., 2008. "Technical efficiency in primary health care: does quality matter?," MPRA Paper 10725, University Library of Munich, Germany.
  2. Roberta Longo & Claire Hulme & Andrew Smith, 2012. "Measures of Performance in Primary Care - a Review of Efficiency Studies," Working Papers 1203, Academic Unit of Health Economics, Leeds Institute of Health Sciences, University of Leeds.
  3. Antonio Giuffrida & Hugh Gravelle, 2001. "Measuring performance in primary care: econometric analysis and DEA," Applied Economics, Taylor & Francis Journals, vol. 33(2), pages 163-175.
  4. Mann, Stefan, 2001. "Zur Effizienz der deutschen Agrarverwaltung," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 50(5).
  5. Alexandre Marinho, 2004. "Evidências e Modelos Sobre a Coexistência de Hospitais com Fins Lucrativos e Hospitais sem Fins Lucrativos no Sistema Único de Saúde Brasileiro," Discussion Papers 1041, Instituto de Pesquisa Econômica Aplicada - IPEA.
  6. Andrew Street, 2003. "How much confidence should we place in efficiency estimates?," Health Economics, John Wiley & Sons, Ltd., vol. 12(11), pages 895-907.

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