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Cost Structure and Efficiency in Community Hospitals in the NHS in England

Author

Listed:
  • John Buckell

    (School of Public Health, Yale University)

  • Andrew Smith

    (Institute for Transport Studies, University of Leeds)

  • Claire Hulme

    (Leeds Institute for Health Sciences, University of Leeds)

  • John Young

    (Leeds Institute for Health Sciences, University of Leeds)

Abstract

Community hospitals provide intermediate care, which is rising up the political agenda as issues of population ageing and the integration of health and social care gain prominence. Currently, services in community hospitals are modestly provided, but funding could be channelled to aid their expansion, if supported by evidence. The clinical benefits of community care relative to hospital-based treatment are well documented for elderly patients. However, economic evidence of intermediate care is scant. In this study, we look to provide some insights the costs of service provision in intermediate care. Specifically, we consider the provision of intermediate care in community hospitals, and apply econometric techniques for the first time. We make use of a unique data set to explore the cost structure of intermediate care in the community hospital setting and assess the relative efficiency thereof. We further consider the drivers of costs and economies of scale. We find efficiency of around 83% and evidence of economies of scale in community hospitals.

Suggested Citation

  • John Buckell & Andrew Smith & Claire Hulme & John Young, 2016. "Cost Structure and Efficiency in Community Hospitals in the NHS in England," Working Papers 1601, Academic Unit of Health Economics, Leeds Institute of Health Sciences, University of Leeds.
    • Handle: RePEc:lee:wpaper:1601
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    Download full text from publisher

    File URL: http://medhealth.leeds.ac.uk/downloads/file/2477/working_paper_16-01
    File Function: First version, 2016
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    More about this item

    Keywords

    Efficiency; Community Hospitals; Intermediate Care; Benchmarking;
    All these keywords.

    JEL classification:

    • I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • K23 - Law and Economics - - Regulation and Business Law - - - Regulated Industries and Administrative Law
    • L32 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Public Enterprises; Public-Private Enterprises

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