Measuring hospital cost efficiency with panel data models.
This paper investigated the development of hospital cost efficiency and productivity in Finland in 1988-1994 using a comparative application of parametric and non-parametric panel models. Stochastic cost frontier models with a time-varying inefficiency component were used as parametric methods. As non-parametric methods various DEA models were employed to calculate efficiency scores and the Malmquist productivity index. The results revealed a 3-5% annual average increase in productivity, half of which was due to improvement in cost efficiency and half due to technological change. The results by parametric and non-parametric methods compared well with respect to individual efficiency scores, time-varying efficiency and technological change. The state subsidy reform of 1993 did not seem to have any observable effects on the hospital efficiency.
Linna
M
M
National Research and Development Centre for Welfare and Health, Helsinki, Finland. miika.linna@stakes.fi
D015331:Cohort Studies; D003362:Cost-Benefit Analysis / Q000379:methods / Q000592:standards; D003430:Cross-Sectional Studies; D017598:Efficiency, Organizational / Q000191:economics / Q000706:statistics & numerical data* / Q000639:trends; D005387:Finland; D006302:Health Services Research; D006739:Hospital Administration / Q000592:standards / Q000706:statistics & numerical data* / Q000639:trends; D017721:Hospital Costs / Q000706:statistics & numerical data; D006801:Humans; D015233:Models, Statistical; D018709:Statistics, Nonparametric; D013269:Stochastic Processes