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Optimal productive size of hospital’s intensive care units

  • Hervé Leleu

    ()

    (CNRS-LEM (UMR 8179), IESEG School of Management)

  • James Moises

    ()

    (Tulane University)

  • Vivian Valdmanis

    ()

    (University of the Sciences in Philadelphia)

Authors of past studies focusing on returns to scale in hospitals proffered mixed results. These seemingly contradictory findings have probably arisen due to different methodological approaches (parametric or non parametric), different aggregation levels of analysis (hospital/department/units), nature of data (quantity data or economic values) and also due to technological improvements operating in hospitals and case mix adjustment to account for the severity of patients' conditions.

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Paper provided by IESEG School of Management in its series Working Papers with number 2011-ECO-01.

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Length: 29 pages
Date of creation: Mar 2011
Date of revision:
Handle: RePEc:ies:wpaper:e201101
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  1. J.Ph. Boussemart & W. Briec & H. Leleu, 2007. "Linear Programming Solutions and Distance Functions Under a Constant Returns to Scale Technology," Post-Print hal-00259550, HAL.
  2. Tsekouras, Kostas & Papathanassopoulos, Fotis & Kounetas, Kostas & Pappous, Giorgos, 2010. "Does the adoption of new technology boost productive efficiency in the public sector? The case of ICUs system," International Journal of Production Economics, Elsevier, vol. 128(1), pages 427-433, November.
  3. Paul W. Wilson & Kathleen Carey, 2004. "Nonparametric analysis of returns to scale in the US hospital industry," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 19(4), pages 505-524.
  4. Boussemart, Jean-Philippe & Briec, Walter & Peypoch, Nicolas & Tavéra, Christophe, 2009. "[alpha]-Returns to scale and multi-output production technologies," European Journal of Operational Research, Elsevier, vol. 197(1), pages 332-339, August.
  5. Dranove, David, 1998. "Economies of scale in non-revenue producing cost centers: Implications for hospital mergers," Journal of Health Economics, Elsevier, vol. 17(1), pages 69-83, January.
  6. Vita, Michael G., 1990. "Exploring hospital production relationships with flexible functional forms," Journal of Health Economics, Elsevier, vol. 9(1), pages 1-21, June.
  7. Charnes, A. & Cooper, W. W. & Rhodes, E., 1978. "Measuring the efficiency of decision making units," European Journal of Operational Research, Elsevier, vol. 2(6), pages 429-444, November.
  8. Lindrooth, Richard C. & Lo Sasso, Anthony T. & Bazzoli, Gloria J., 2003. "The effect of urban hospital closure on markets," Journal of Health Economics, Elsevier, vol. 22(5), pages 691-712, September.
  9. Bruce Hollingsworth, 2008. "The measurement of efficiency and productivity of health care delivery," Health Economics, John Wiley & Sons, Ltd., vol. 17(10), pages 1107-1128.
  10. Lau, Lawrence J., 1978. "Applications of Profit Functions," Histoy of Economic Thought Chapters, in: Fuss, Melvyn & McFadden, Daniel (ed.), Production Economics: A Dual Approach to Theory and Applications, volume 1, chapter 3 McMaster University Archive for the History of Economic Thought.
  11. R. D. Banker & A. Charnes & W. W. Cooper, 1984. "Some Models for Estimating Technical and Scale Inefficiencies in Data Envelopment Analysis," Management Science, INFORMS, vol. 30(9), pages 1078-1092, September.
  12. R. Färe & S. Grosskopf & D. Njinkeu, 1988. "Note---On Piecewise Reference Technologies," Management Science, INFORMS, vol. 34(12), pages 1507-1511, December.
  13. Preyra, Colin & Pink, George, 2006. "Scale and scope efficiencies through hospital consolidations," Journal of Health Economics, Elsevier, vol. 25(6), pages 1049-1068, November.
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