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Decomposing the productivity differences between hospitals in the Nordic countries

Author

Listed:
  • Kittelsen, Sverre A.C.

    () (Frisch Centre)

  • Persson, Benny Adam

    (Frisch Centre)

  • Rehnberg, Clas

    (Karolinska Institutet, Stockholm)

  • Anthun, Kjartan S.

    (SINTEF)

  • Goude, Fanny

    (Karolinska Institutet)

  • Rättö, Hanna

    (National Institute for Health and Welfare – THL, Helsinki)

  • Hope, Øyvind

    (SINTEF)

  • Häkkinen, Unto

    (National Institute for Health and Welfare – THL, Helsinki)

  • Medin, Emma

    (Karolinska Institutet, Stockholm)

  • Kalseth, Birgitte

    (SINTEF)

  • Kilsmark, Jannie

    (Danish Institute of health research, Copenhagen)

Abstract

Previous studies indicate that Finnish hospitals have significantly higher productivity than in the other Nordic countries. We decompose the productivity levels into technical efficiency, scale efficiency and country specific possibility sets (technical frontiers). Data have been collected on operating costs and patient discharges in each DRG group for all hospitals in the Nordic countries. We find that there are small differences in scale and technical efficiency between countries, but large differences in production possibilities (frontier position). The results are robust to the choice of bootstrapped Data Envelopment Analysis (DEA) or Stochastic Frontier Analysis (SFA) as frontier estimation methodology.

Suggested Citation

  • Kittelsen, Sverre A.C. & Persson, Benny Adam & Rehnberg, Clas & Anthun, Kjartan S. & Goude, Fanny & Rättö, Hanna & Hope, Øyvind & Häkkinen, Unto & Medin, Emma & Kalseth, Birgitte & Kilsmark, Jannie, 2014. "Decomposing the productivity differences between hospitals in the Nordic countries," HERO On line Working Paper Series 2013:4, Oslo University, Health Economics Research Programme.
  • Handle: RePEc:hhs:oslohe:2013_004
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    References listed on IDEAS

    as
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    Cited by:

    1. Anthun, Kjartan Sarheim & Kittelsen, Sverre Andreas Campbell & Magnussen, Jon, 2017. "Productivity growth, case mix and optimal size of hospitals. A 16-year study of the Norwegian hospital sector," Health Policy, Elsevier, vol. 121(4), pages 418-425.

    More about this item

    Keywords

    Productivity; Hospitals; Efficiency; DEA; SFA;

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior

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