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Economies of scale in the production of public health services: An analysis of local health districts in Florida

Author

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  • Bernet, P.M.
  • Singh, S.

Abstract

Objectives: We examined the existence and the extent of scale and scope economies in the delivery of public health services. We also tested the strength f agency, population, and community characteristics that moderate scale and scope economies. Methods: We collected service count and cost data for all Florida local health districts for 2008 and 2010, complemented with data on agency, population, and community characteristics. Using translog cost functions, we built models of operating efficiencies for 5 core public health activities: communicable disease surveillance, chronic disease prevention, food hygiene, on-site sewage treatment, and vital records. Results: Economies of scale were found in most activities, with cost per unit decreasing as volume increased. The models did not, however, identify meaningfuleconomies of scope. Conclusions: Consolidation or regionalization might lower cost per unit for select public health activities. This could free up resources for use in other areas, further improving the public's health.

Suggested Citation

  • Bernet, P.M. & Singh, S., 2015. "Economies of scale in the production of public health services: An analysis of local health districts in Florida," American Journal of Public Health, American Public Health Association, vol. 105, pages 260-267.
    • Handle: RePEc:aph:ajpbhl:10.2105/ajph.2014.302350_4
    DOI: 10.2105/AJPH.2014.302350
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    Cited by:

    1. John P. Bartkowski & Xiaohe Xu & Jerri S. Avery & Debbie Ferguson & Frankie J. Johnson, 2018. "Good Things in Small Packages? Evaluating an Economy of Scale Approach to Behavioral Health Promotion in Rural America," J, MDPI, vol. 1(1), pages 1-15, June.

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