Cost efficiency of US hospitals: a stochastic frontier approach.
This study examined the impact of managed care and other environmental factors on hospital inefficiency in 1631 US hospitals during the period 1990-1996. A panel, stochastic frontier regression model was used to estimate inefficiency parameters and inefficiency scores. The results suggest that mean estimated inefficiency decreased by about 28% during the study period. Inefficiency was negatively associated with health maintenance organization (HMO) penetration and industry concentration. It was positively related with Medicare share and for-profit ownership status.
Rosko
M D
MD
School of Business Administration, Widener University, Chester, PA 19013, USA. michael.d.rosko@widener.edu
D003362:Cost-Benefit Analysis; D003659:Decision Making, Organizational; D017598:Efficiency, Organizational / Q000191:economics*; D006302:Health Services Research; D006739:Hospital Administration / Q000191:economics* / Q000592:standards; D006801:Humans; D016013:Likelihood Functions; D008137:Longitudinal Studies; D008329:Managed Care Programs / Q000191:economics* / Q000592:standards; D006278:Medicare / Q000191:economics / Q000592:standards; D017059:Models, Econometric; D010067:Ownership / Q000191:economics / Q000592:standards; D012044:Regression Analysis; D013269:Stochastic Processes; D014481:United States