Cost efficiency of US hospitals: a stochastic frontier approach
- 25 May 2001
- journal article
- hospital performance
- Published by Wiley in Health Economics
- Vol. 10 (6) , 539-551
- https://doi.org/10.1002/hec.607
Abstract
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. Copyright © 2001 John Wiley & Sons, Ltd.Keywords
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