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Productivity changes in Taiwanese hospitals and the national health insurance


  • Shih-Neng Chen


In 1995 Taiwan launched the National Health Insurance (NHI) programme, which changed the method payment for hospital finances. This article examines the impact of this financial reform on hospital productivity during this period. Using the Malmquist productivity index approach, a hospital's change in productivity is decomposed into quality, efficiency, and technological change components. Factors affecting efficiency and productivity are also assessed. Results indicate that most hospitals experienced a significant productivity slowdown due to declines in technology and quality of service, but efficiency did significantly improve. The inception of the NHI programme does greatly improve a hospital's productivity and quality of service, but decreases efficiency. Public hospitals' efficiency improvements are significant.

Suggested Citation

  • Shih-Neng Chen, 2006. "Productivity changes in Taiwanese hospitals and the national health insurance," The Service Industries Journal, Taylor & Francis Journals, vol. 26(4), pages 459-477, June.
  • Handle: RePEc:taf:servic:v:26:y:2006:i:4:p:459-477 DOI: 10.1080/02642060600622355

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    References listed on IDEAS

    1. Wolfgang Buchwald & Alain Saglio, 1994. "Des indices de prix à la consommation plus comparables entre la France et la RFA," Économie et Statistique, Programme National Persée, vol. 275(1), pages 9-23.
    2. Hill, T P, 1977. "On Goods and Services," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 23(4), pages 315-338, December.
    3. François Magnien & Jacques Pougnard, 2000. "Les indices à utilité constante : une référence pour mesurer l'évolution des prix," Économie et Statistique, Programme National Persée, vol. 335(1), pages 81-94.
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    Cited by:

    1. Chia-Hsuan Wu & Ching-Cheng Chang & Po-Chi Chen & Ken-Nan Kuo, 2013. "Efficiency and productivity change in Taiwan’s hospitals: a non-radial quality-adjusted measurement," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 21(2), pages 431-453, March.
    2. Sulku, Seher Nur, 2011. "The impacts of health care reforms on the efficiency of the Turkish public hospitals: Provincial markets," MPRA Paper 29598, University Library of Munich, Germany.
    3. repec:bla:ijhplm:v:31:y:2016:i:4:p:537-553 is not listed on IDEAS
    4. repec:kap:hcarem:v:20:y:2017:i:2:d:10.1007_s10729-015-9348-9 is not listed on IDEAS
    5. repec:spt:admaec:v:7:y:2017:i:4:f:7_4_2 is not listed on IDEAS

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