State Level Efficiency Measures for Healthcare Systems

Makiela, Kamil (2010): State Level Efficiency Measures for Healthcare Systems. Published in: SPNHA Review , Vol. 6, No. 1 (1 January 2010): pp. 15-33.

Abstract

This article presents a parametric approach to healthcare system productivity analysis across the USA between 2000 and 2003. Though similar productivity analyses have been made on a country level, little research is devoted to state-level healthcare efficiency analysis. Hence, the aim of this exercise is to compute the so-called technical frontier also known as the best practice frontier which represents maximum obtainable output given inputs. The difference between each state’s health level and its potentially attainable maximum denotes a given state healthcare inefficiency. The Stochastic Frontier approach used in this article allows the computation of efficiency scores as well as accounting for random disturbances in the data.

• Item Type: MPRA Paper
• Language: English
• Keywords: Efficiency measures; US healthcare; state productivity
• Subjects: C - Mathematical and Quantitative Methods > C0 - General > C01 - Econometrics; I - Health, Education, and Welfare > I1 - Health > I11 - Analysis of Health Care Markets

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