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Cost efficiency of US hospitals: a stochastic frontier approach

  • Michael D. Rosko

    (School of Business Administration, Widener University, Chester, PA, USA)

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    This study examined the impact of managed care and other environmental factors on hospital inefficiency in 1631 US hospitals during the period 1990-1996. A panel, stochastic frontier regression model was used to estimate inefficiency parameters and inefficiency scores. The results suggest that mean estimated inefficiency decreased by about 28% during the study period. Inefficiency was negatively associated with health maintenance organization (HMO) penetration and industry concentration. It was positively related with Medicare share and for-profit ownership status. Copyright © 2001 John Wiley & Sons, Ltd.

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    Article provided by John Wiley & Sons, Ltd. in its journal Health Economics.

    Volume (Year): 10 (2001)
    Issue (Month): 6 ()
    Pages: 539-551

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    Handle: RePEc:wly:hlthec:v:10:y:2001:i:6:p:539-551
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