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Productivity Growth in the English National Health Service from 1998/1999 to 2013/2014

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  • Chris Bojke
  • Adriana Castelli
  • Katja Grašič
  • Andrew Street

Abstract

Productivity growth is a key measure against which National Health Service (NHS) achievements are judged. We measure NHS productivity growth as a set of paired year‐on‐year comparisons from 1998/1999–1999/2000 through 2012/2013–2013/2014, which are converted into a chained index that summarises productivity growth over the entire period. Our measure is as comprehensive as data permit and accounts for the multitude of diverse outputs and inputs involved in the production process and for regular revisions to the data used to quantify outputs and inputs. Over the full‐time period, NHS output increased by 88.96% and inputs by 81.58%, delivering overall total factor productivity growth of 4.07%. Productivity growth was negative during the first two terms of Blair's government, with average yearly growth rate of −1.01% per annum (pa) during the first term (to 2000/2001) and −1.49% pa during the second term (2000/2001–2004/2005). Productivity growth was positive under Blair's third term (2004/2005–2007/2008) at 1.41% pa and under the Brown government (2007/2008–2010/2011), averaging 1.13% pa. Productivity growth remained positive under the Coalition (2010/2011–2013/2014), averaging 1.56% pa. © 2016 The Authors Health Economics Published by John Wiley & Sons Ltd.

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  • Chris Bojke & Adriana Castelli & Katja Grašič & Andrew Street, 2017. "Productivity Growth in the English National Health Service from 1998/1999 to 2013/2014," Health Economics, John Wiley & Sons, Ltd., vol. 26(5), pages 547-565, May.
    • Handle: RePEc:wly:hlthec:v:26:y:2017:i:5:p:547-565
    DOI: 10.1002/hec.3338
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    References listed on IDEAS

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    1. Diane Dawson & Hugh Gravelle & Mary O'Mahony & Andrew Street & Martin Weale & Adriana Castelli & Rowena Jacobs & Paul Kind & Pete Loveridge & Stephen Martin & Philip Stevens & Lucy Stokes, 2005. "Developing new approaches to measuring NHS outputs and productivity," Working Papers 006cherp, Centre for Health Economics, University of York, revised Dec 2005.
    2. Bert M. Balk, 2010. "An Assumption‐Free Framework For Measuring Productivity Change," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 56(s1), pages 224-256, June.
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    5. Diane Dawson & Hugh Gravelle & Mary O'Mahony & Andrew Street & Martin Weale & Adriana Castelli & Rowena Jacobs & Paul Kind & Pete Loveridge & Stephen Martin & Philip Stevens & Lucy Stokes, 2005. "Developing new approaches to measuring NHS outputs and productivity," Working Papers 006cherp, Centre for Health Economics, University of York, revised Dec 2005.
    6. Adriana Castelli & Mauro Laudicella & Andrew Street, 2008. "Measuring NHS Output Growth," Working Papers 043cherp, Centre for Health Economics, University of York.
    7. Castelli, Adriana & Laudicella, Mauro & Street, Andrew & Ward, Padraic, 2011. "Getting out what we put in: productivity of the English National Health Service," Health Economics, Policy and Law, Cambridge University Press, vol. 6(3), pages 313-335, July.
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    9. Adriana Castelli & Diane Dawson & Hugh Gravelle & Rowena Jacobs & Paul Kind & Pete Loveridge & Stephen Martin & Mary O'Mahony & Philip Stevens & Lucy Stokes & Andrew Street & Martin Weale, 2007. "A New Approach To Measuring Health System Output and Productivity," National Institute Economic Review, National Institute of Economic and Social Research, vol. 200(1), pages 105-116, April.
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    12. Adriana Castelli & Andrew Street & Rossella Verzulli & Padraic Ward, 2015. "Examining variations in hospital productivity in the English NHS," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 16(3), pages 243-254, April.
    13. Robert J. Hill, 2006. "When Does Chaining Reduce The Paasche–Laspeyres Spread? An Application To Scanner Data," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 52(2), pages 309-325, June.
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    Cited by:

    1. Alexander Karmann & Felix Roesel, 2017. "Hospital Policy and Productivity – Evidence from German States," Health Economics, John Wiley & Sons, Ltd., vol. 26(12), pages 1548-1565, December.
    2. Adriana Castelli & Martin Chalkley & James Gaughan & Idaira Rodriguez Santana, 2020. "Productivity of the English National Health Service: 2017/18 update," Working Papers 171cherp, Centre for Health Economics, University of York.
    3. Anastasia Arabadzhyan & Adriana Castelli & Martin Chalkley & James Gaughan & Maria Ana Matias, 2021. "Productivity of the English National Health Service 2018/19 Update," Working Papers 182cherp, Centre for Health Economics, University of York.
    4. Ayoubi, Charles, 2020. "Machine learning in healthcare: Mirage or miracle for breaking the costs dead-lock?," Thesis Commons tc24d, Center for Open Science.
    5. Atella, Vincenzo & Belotti, Federico & Bojke, Chris & Castelli, Adriana & Grašič, Katja & Kopinska, Joanna & Piano Mortari, Andrea & Street, Andrew, 2019. "How health policy shapes healthcare sector productivity? Evidence from Italy and UK," Health Policy, Elsevier, vol. 123(1), pages 27-36.
    6. Vincenzo Atella & Federico Belotti & Chris Bojke & Adriana Castelli & Katja Grašic & Joanna Kopinska & Andrea Piano Mortari & Andrew Street, 2017. "Against All Odds: The Contribution of the Healthcare Sector to Productivity. Evidence from Italy and UK from 2004 to 2011," CEIS Research Paper 418, Tor Vergata University, CEIS, revised 12 Dec 2017.
    7. María José Aragón Aragón & Adriana Castelli & Martin Chalkley & James Gaughan, 2019. "Can productivity growth measures identify best performing hospitals? Evidence from the English National Health Service," Health Economics, John Wiley & Sons, Ltd., vol. 28(3), pages 364-372, March.
    8. Keegan, Conor & Brick, Aoife & Bergin, Adele & Wren, Maev-Ann & Whyte, Richard & Henry, Edward, 2020. "Projections of expenditure for public hospitals in Ireland, 2018–2035, based on the Hippocrates Model," Research Series, Economic and Social Research Institute (ESRI), number RS117.

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