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The measurement of hospital efficiency

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  • McGuire, Alistair

Abstract

The measurement of efficiency in the hospital sector is particularly difficult given that there is no universally recognised objective function. A generalised neo-classical approach is adopted in specifying a hospital objective function which acknowledges the importance of transaction costs and property right holdings in this sector. It is shown that such an approach may be used to distinguish between technical and allocative efficiency, thereby aiding interpretation of the stochastic element contained in production models. Quantification of allocative inefficiency is also undertaken.

Suggested Citation

  • McGuire, Alistair, 1987. "The measurement of hospital efficiency," Social Science & Medicine, Elsevier, vol. 24(9), pages 719-724, January.
  • Handle: RePEc:eee:socmed:v:24:y:1987:i:9:p:719-724
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    Cited by:

    1. Mehta, Shekhar & Giertz, J. Fred, 1996. "Measuring the Performance of the Property Tax Assessment Process," National Tax Journal, National Tax Association, vol. 49(1), pages 73-85, March.
    2. Toodi, Bhaskar & Featherstone, Allen M. & Young, Ronald C., 1998. "Efficiency Analysis Of Hospitals In The Great Plains: An Urban-Rural Comparison," 1998 Annual meeting, August 2-5, Salt Lake City, UT 20806, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    3. Alexander S. Preker & Xingzhu Liu & Edit V. Velenyi & Enis Baris, 2007. "Public Ends, Private Means : Strategic Purchasing of Health Services," World Bank Publications, The World Bank, number 6683.
    4. Mehta, Shekhar & Giertz, J. Fred, 1996. "Measuring the Performance of the Property Tax Assessment Process," National Tax Journal, National Tax Association, vol. 49(1), pages 73-85, March.
    5. Ana Rodríguez-Álvarez & C. A. Knox Lovell, 2004. "Excess capacity and expense preference behaviour in National Health Systems: an application to the Spanish public hospitals," Health Economics, John Wiley & Sons, Ltd., vol. 13(2), pages 157-169.

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