Munich Personal RePEc Archive

On the estimation of hospital cost: the approach

Kurup, Hari K K (2010): On the estimation of hospital cost: the approach.

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There has been a huge interest during the last decade on modelling hospital cost. Now that there is a fare amount of clarity achieved in estimating cost functions of hospitals, it is time to take stock of the existing methodologies. This article through a brief review of the past studies attempts to bring to light the issues and methodology related to cost estimation in health care provision, keeping in mind the increasing interest towards health insurance in developing countries. These include problems related to output measurement, definition of input prices and definition of cost and its components. The focus of the review is more on the statistical cost functions than on the accounting based cost calculations.

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