Efficiency indicators versus forntier methods: an empirical investigation of italian public hospitals

Authors

  • Lorenzo Clementi Università di Roma “La Sapienza”
  • Antonello Maruotti Università degli Studi Roma Tre, Roma

DOI:

https://doi.org/10.6092/issn.1973-2201/3509

Abstract

Efficiency has a key-role in the measurement of the impact of the National Health Service (NHS) reforms. We investigate the issue of inefficiency in health sector and provide empirical evidence derived from Italian public hospitals. Despite the importance of efficiency measurement in health care services, only recently advanced econometric methods have been applied to hospital data. We provide a synoptic survey of few empirical analyses of efficiency measurement in health care services. An estimate of the cost efficiency level in Italian public hospitals during 2001-2003 is obtained through a sample. We propose an efficiency indicator and provide cost frontiers for such hospitals, using stochastic frontier analysis (SFA) for longitudinal data.

References

ASSR (2003), Confronto tra le aziende ospedaliere 2001, Monitor, 6: 49-61. http://www.assr.it/monitor/monitor_2003/Monitor2003.htm

ASSR (2004), Confronto tra le aziende ospedaliere 2002, Monitor, 11: 41-59. http://www.assr.it/monitor/monitor_2004/monitor_2004.htm

ASSR (2006), Ricoveri, personale e spesa nelle aziende ospedaliere 2003, Monitor, 16: 45-63. http://www.assr.it/monitor/monitor_2006/monitor2006.htm

B.H. BALTAGI (2001), Econometric of Panel Data, Wiley.

A. BARRETTA, E. BOCCI, A. COZZOLINO (2005), Sull'efficacia delle strategie tese a ridurre la variabilità degli indicatori di efficienza impiegati nei progetti di benchmarking: un'analisi statistica. Tendenze nuove, 6: 539-550.

G.E. BATTESE, T.J COELLI (1992), Frontier production functions, technical efficiency and panel data: with application to Paddy Farmers in India, Journal of Productivity Analysis, 3: 153-169.

G.E. BATTESE, T.J COELLI (1995), A model for technical inefficiency effects in a stochastic frontier production function for panel data, Empirical Economics, 20: 325-332.

S. BERKI (1972), Hosptial Economics. Lexington Books, Mass.

U. BOCCHINO (2000). Manuale di controllo di gestione. Il Sole 24 Ore S.p.a., Milano.

T.J. COELLI, D.S.P. RAO, G.E. BATTESE (1998), An introduction to efficiency and productivity analysis. Kluwer Academic.

R.F. CONRAD, R.P. STRAUSS (1983), A multiple-output and a multiple-input model of the hospital industry in North Carolina, Applied Economics, 15: 341-352.

T.G. COWING, A.G. HOLTMANN (1983), Multiproduct short-run hospital cost function: Empirical evidence and policy implication from cross section data, Southern Economic Journal, 49: 637-653.

L. CRIVELLI, M. FILIPPINI, D. LUNATI (2000), Dimensione Ottima degli Ospedali in uno Stato Federale, Economics Faculty, Lugano.

S. ECKERMANN (1994), Hospital productivity: a contradiction in terms?, In Harris, A. (ed.), Economics of Health 1994: Proceedings of the Sixteenth Australian Conference of Health Economists, Australian Studies in Health Service Administration series n.78. School of Health Administration, University of New South West, pp. 167-181.

R. ELLIS (1992), Hospital costs function estimation when firms may not try to minimize total costs, Manuscript. Boston University.

J.E. HARRIS (1990), The boren amendament: Medicaid reimbursement to hospital and nursing facilities, American Public Welfare Association, Washington DC.

B. HOLLINGSWORT, A. STREET (2006), The market for efficiency analysis of health care organizations, Health Economics, 15: 1055-1059.

R. JACOBS, P. SMITH, A. STREET (2006), Measuring efficiency in health care: analytical techniques and health policy, Cambridge University Press.

P.G.N. KRAMERS (2003), The ECHI project: health indicators for the European Community, European Journal of Public Health, 13: 101-106.

J.R. LAVE, L.B. LAVE (1970). Hospital cost function, America Review, 4: 165-180.

W. MEEUSEN, J. VAN DEN BROECK (1977), Efficiency estimation froma cobb-douglas production functions with composed error, International Economic Review, 18: 435-444.

D. MORTIMER (2002), Competing methods for efficiency meaasurement: a systematic review of direct DEA vs SFA/DEA comparison, Centre for Health Program Evaluation. Working Paper. Monash Univerisity.

S. NAZIMI (2002). Do Competition and Managed Care Improve Quality? Health Economics, 11: 571-584.

OECD (1992), The Reform of Health Care: A Comparative Analysis of Seven OECD Countries. Paris.

OECD (1994) The Reform of Health Care: A Comparative Analysis of Seventeen OECD Countries. Paris, 1994.

A.E. POWELL, H.T.O DAVIES, R.G. THOMSON (2002). Using Routine Comparative Data to Assess the Quality of Health Care: Understanding and Avoiding Common Pitfalls, Qual Saf Health Care, 12: 122-128.

J. RICHMOND (1974), Estimating the Efficiency of Production, International Economic Review, 15: 515-521.

M. ROSKO, J. PROENCA (2005), Impact of network and system use on hospital X-efficiency, Health Care Management Review, 30: 69-79.

M. ROSKO, R.L. MUTTER (2008), Stochastic frontier analysis of hospital inefficiency, Medical Care Research and Review, 65: 131-166.

J.M.A. SMITS, J. DE MEESTER, M. DENG ET AL. (2003), Moratality Rates after Heart Transplantation: How to Compare Center-specific Outcome Data. Transplantation, 75: 90-96.

R. SUDGEN, A. WILLIAMS (1978), The principles of practical cost-benefit analysis, Oxford University Press.

J.D. THOMPSON, F.B. FETTER, C.D. MROSS (1975), Casemix and resource use, Inquiry, XII December, 300-312.

R. TVETERAS, G.E. BATTESE (2006), Agglomeration externalities, productivity and technical inefficiency, Journal of Regional Science, 46: 605-625.

H. WANG, P. SCHMIDT (2002), One-step and two-steps estimation of the effects of exogeneous variables on technical efficiency levels, Journal of Productivity Analysis, 18: 129-144.

J. WANG (2001), Estimation of Hospital Cost Functions and Efficiency Measurement: an Overview, China Center for Economic Reserch, Working Papers Series, No. E2001004.

A. WOUTERS (1993), The cost and efficiency of public and private health care facilities in Ogun State, Nigeria, Health Economics, 2: 31-42.

P. ZWEIFEL, F. BREYER (1997). Health Economics. Oxford University Press.

Downloads

Published

2007-10-01

How to Cite

Clementi, L., & Maruotti, A. (2007). Efficiency indicators versus forntier methods: an empirical investigation of italian public hospitals. Statistica, 67(3), 263–279. https://doi.org/10.6092/issn.1973-2201/3509

Issue

Section

Articles