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Measuring hospital cost efficiency with panel data models.

M Linna
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Abstract

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.

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Cohort StudiesCost-Benefit AnalysisCross-Sectional StudiesEfficiency, OrganizationalFinlandHealth Services ResearchHospital AdministrationHospital CostsHumansModels, StatisticalStatistics, NonparametricStochastic ProcessesJournal Article

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M Linna. 1998. Measuring hospital cost efficiency with panel data models.. https://doi.org/10.1002/(sici)1099-1050(199808)7%3A5%3C415%3A%3Aaid-hec357%3E3.0.co%3B2-9

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Cohort Studies↗
PubMed1999

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