Jos L.T. Blank and Vivian G. Valdmanis
Hospitals worldwide command the majority of any countries’ health care budget. Reasons for these higher costs include the aging of the population requiring more intensive health…
Abstract
Hospitals worldwide command the majority of any countries’ health care budget. Reasons for these higher costs include the aging of the population requiring more intensive health care treatments provided in hospitals, the relatively high costs of labor in this labor intensive industry and payment systems that may encourage inefficient behavior on the part of hospital managers and physicians. Governments are seeking to instruments to mitigate this cost rise. Liberalizing hospital markets, deregulation, changing budget systems and changing ownership are only a few examples of attempts to make hospitals more efficient.
There is a large body of literature on the efficiency and productivity of hospitals. Most studies focus on the effects of environmental pressures on hospital efficiency, such as…
Abstract
There is a large body of literature on the efficiency and productivity of hospitals. Most studies focus on the effects of environmental pressures on hospital efficiency, such as payment systems (Dismuke & Sena, 1999; Sommersguter-Reichmann, 2000), competition (Rosko, 1999, 2004), Sari, 2003), and property rights (Gruca & Nath, 2001). Other studies pinpoint their attention to economic phenomena, such as economies of scale (Lindrooth, Lo Sasso, & Bazzoli, 2003; Dranove & Lindrooth, 2003), economies of scope (Prior & Sola, 2000; Grosskopf, Margaritis, & Valdmanis, 2001; Li & Rosenman, 2001), chain membership (Menke, 1997), economic behavior (Blank & Merkies, 2004), and expense preference (Rodriguez-Alvarez & Lovell, 2004).
Jos L.T. Blank and Vivian G. Valdmanis
It is well recognized that hospitals do not operate in a competitive market typically observed in the economics literature, but rather alternative measures of performance must be…
Abstract
It is well recognized that hospitals do not operate in a competitive market typically observed in the economics literature, but rather alternative measures of performance must be developed. In other words, health policy analysts, managers, and decision-makers cannot rely on determining efficiency via the typical profit maximizing/cost minimizing firm but develop techniques that address the issues germane to hospital productivity. What has been presented in this book demonstrates the research in both productivity and policy that must attend to this anomaly. In this introductory section, we briefly summarize the theoretical underpinnings of this book.
Jos L.T. Blank and Vivian G. Valdmanis
Hospitals worldwide command the majority of any countries’ health care budget. Reasons for these higher costs include the aging of the population requiring more intensive health…
Abstract
Hospitals worldwide command the majority of any countries’ health care budget. Reasons for these higher costs include the aging of the population requiring more intensive health care treatments provided in hospitals, the relatively high costs of labor in this labor intensive industry and payment systems that may encourage inefficient behavior on the part of hospital managers and physicians, that have not been fully mitigated via reforms and regulations.
There are two main dimensions in which the performance of a production unit can be assessed. The first is the dimension of time. The basic question here is: how is this or that…
Abstract
There are two main dimensions in which the performance of a production unit can be assessed. The first is the dimension of time. The basic question here is: how is this or that production unit doing over time? Assessing a unit's performance over time is called monitoring. The second dimension is characterized by the question: how is this or that production unit doing relative to other, similar units? To answer this question one needs to specify the reference set of units and one needs sufficient information on each of the members of this set. This activity is usually called benchmarking. A combination of the two dimensions in the setting of a panel is also possible.
Jos L.T. Blank, Bart L. van Hulst, Patrick M. Koot and Ruud van der Aa
The purpose of this paper is to focus on the efficiency of Dutch secondary schools. In particular, the size of the schools' management is benchmarked.
Abstract
Purpose
The purpose of this paper is to focus on the efficiency of Dutch secondary schools. In particular, the size of the schools' management is benchmarked.
Design/methodology/approach
The methodology used is an advanced micro‐econometric technique called stochastic frontier analysis.
Findings
The method used is applicable for identifying the optimum allocation, in particular the size of management. The overall result is that there is no systematic over or under allocation of management in Dutch secondary schools.
Practical implications
Each school received an individual benchmark. Schools can position themselves in respect with other schools and have information on how to adjust allocation of resources.
Originality/value
The paper contributes to the discussion about the size of management costs of Dutch secondary schools. The analysis is based on state‐of‐the‐art methodologies and has not been applied to the educational process.
Details
Keywords
Ila Semenick Alam is an associate professor. She received her Ph.D. in 1995 from Rice University in Houston, Texas. Her primary fields of specialization are applied econometrics…
Abstract
Ila Semenick Alam is an associate professor. She received her Ph.D. in 1995 from Rice University in Houston, Texas. Her primary fields of specialization are applied econometrics and productivity in various sectors including the airlines, healthcare, and financial institutions. She has published in: Journal of Productivity Analysis, International Economic Review, World Bank Economic Review, Journal of Money, Credit and Banking, Singapore Economic Review, and Productivity and Economic Performance in the Asia-Pacific Region.
Rolf Färe, Shawna Grosskopf, Mats Lundström and Pontus Roos
The purpose of this chapter is to suggest a general framework for assessing the efficiency of health care in general, and health care interventions specifically. We begin with a…
Abstract
The purpose of this chapter is to suggest a general framework for assessing the efficiency of health care in general, and health care interventions specifically. We begin with a three-pronged overview of assessing performance in health care which begins with what we call the budget or cost side model relating budgets and costs to treatments. Next we proceed to describing an intermediate outputs specification which relates hospital resources to medical outcomes, and we conclude with a final outcomes model which relates the medical outcomes to patient health outcomes. The third model is illustrated with an application to data from Swedish cataract patients.