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An Examination of Public Hospital Productivity and its Persistence: An Index Number Approach

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  • Choon C. Cheng
  • Anthony Scott
  • Vijaya Sundararajan
  • Wenda Yan
  • Jongsay Yong

Abstract

This paper measures the level and growth of total factor productivity (TFP) of public hospitals in Victoria, Australia, using an index number approach. We further examine the persistence of productivity over time, and the extent to which productivity varies with hospital characteristics such as hospital size. Hospital administrative data from Victoria from 2007–08 to 2011–12 are used. We find substantial variation in TFP across hospitals: large hospitals perform significantly better than small hospitals, both in TFP level and growth. Productivity level is highly persistent over time, but not productivity growth.

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  • Choon C. Cheng & Anthony Scott & Vijaya Sundararajan & Wenda Yan & Jongsay Yong, 2020. "An Examination of Public Hospital Productivity and its Persistence: An Index Number Approach," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 53(3), pages 343-359, September.
    • Handle: RePEc:bla:ausecr:v:53:y:2020:i:3:p:343-359
    DOI: 10.1111/1467-8462.12375
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    References listed on IDEAS

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    Cited by:

    1. Zhichao Wang & Valentin Zelenyuk, 2021. "Performance Analysis of Hospitals in Australia and its Peers: A Systematic Review," CEPA Working Papers Series WP012021, School of Economics, University of Queensland, Australia.

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