Hospital productivity bias when not adjusting for cost heterogeneity: The case of Spain.

ABSTRACT: This research quantifies the bias caused in hospital productivity measurements when cost heterogeneity is not considered. A multi-output stochastic cost frontier under a normalised translog specification is used to approximate the structure of technology of a sample of public general hospitals in Spain during the period 2002-2009. To control for observable heterogeneity in costs, a set of variables related to hospital characteristics are included in the cost frontier specification (i.e., hospital complexity, degree of specialisation, availability of outpatient clinics, variety of high-technology equipment available, teaching activity and quality of care), whereas unobservable heterogeneity is accounted for by means of individual dummy variables. A measure of hospitals' cost efficiency is f

SUBMITTER: Arvelo-Martin A 

PROVIDER: S-EPMC6581279 | biostudies-literature | 2019

REPOSITORIES: biostudies-literature