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Scope and scale inefficiencies in physician practices

  • Robert Rosenman

    (Department of Economics, Washington State University, USA)

  • Daniel Friesner

    (School of Business Administration, Gonzaga University, USA)

Using a national data set, this paper looks at the efficiency of physician practices, focusing on scopes of service by comparing single specialty groups and multispecialty groups. An analysis of efficiency using DEA indicates that there are scope inefficiencies from combining different types of providers into a single practice. Most of the inefficiency is due to technical rather than allocative reasons. In addition, we find that larger practices are able to capture efficiencies of scope, but incur inefficiencies of scale. Copyright © 2004 John Wiley & Sons, Ltd.

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File URL: http://hdl.handle.net/10.1002/hec.882
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Article provided by John Wiley & Sons, Ltd. in its journal Health Economics.

Volume (Year): 13 (2004)
Issue (Month): 11 ()
Pages: 1091-1116

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Handle: RePEc:wly:hlthec:v:13:y:2004:i:11:p:1091-1116
Contact details of provider: Web page: http://www3.interscience.wiley.com/cgi-bin/jhome/5749

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