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Efficiency of Hospitals in the Czech Republic: Conditional Efficiency Approach

Author

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  • Lenka Štastná

    (Institute of Economic Studies, Faculty of Social Sciences, Charles University in Prague, Smetanovo nábreží 6, 111 01 Prague 1, Czech Republic)

  • Jana Votapkova

    (Institute of Economic Studies, Faculty of Social Sciences, Charles University in Prague, Smetanovo nábreží 6, 111 01 Prague 1, Czech Republic)

Abstract

The paper estimates cost efficiency of 81 general hospitals in the Czech Republic during 2006-2010. We employ the conditional order-m approach which is a nonparametric method for efficiency computation accounting for environmental variables. Effects of environmental variables are assessed using the non-parametric significance test and partial regression plots. We find not-for-prot ownership and a presence of a specialized center in a hospital to be detrimental to hospital performance in the group of small and medium hospitals, while not-for-prot ownership is favorable to efficiency for big hospitals. Generally, hospital performance gets worse in period 2009-2010 because additional revenues received in form of user charges which were introduced in 2008 increase spending of hospitals. Only big hospitals proved to take some cost-saving measures as a reaction to financial crisis.

Suggested Citation

  • Lenka Štastná & Jana Votapkova, 2014. "Efficiency of Hospitals in the Czech Republic: Conditional Efficiency Approach," Working Papers IES 2014/31, Charles University Prague, Faculty of Social Sciences, Institute of Economic Studies, revised Sep 2014.
  • Handle: RePEc:fau:wpaper:wp2014_31
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    6. Dino Rizzi & Michele Zanette, 2021. "Potential efficiency gains and expenditure savings in the Italian Regional Healthcare Systems," Politica economica, Società editrice il Mulino, issue 2, pages 187-214.
    7. Dubas-Jakóbczyk, K. & Albreht, T. & Behmane, D. & Bryndova, L. & Dimova, A. & Džakula, A. & Habicht, T. & Murauskiene, L. & Scîntee, S.G. & Smatana, M. & Velkey, Z. & Quentin, W., 2020. "Hospital reforms in 11 Central and Eastern European countries between 2008 and 2019: a comparative analysis," Health Policy, Elsevier, vol. 124(4), pages 368-379.
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    More about this item

    Keywords

    Efficiency; hospitals; conditional order-m FDH; Czech Republic;
    All these keywords.

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets

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