IDEAS home Printed from https://ideas.repec.org/a/eee/jomega/v39y2011i1p14-22.html
   My bibliography  Save this article

Taiwan quality indicator project and hospital productivity growth

Author

Listed:
  • Chang, Shyr-Juh
  • Hsiao, Hsing-Chin
  • Huang, Li-Hua
  • Chang, Hsihui

Abstract

The Taiwan Quality Indicator Project (TQIP) is a quality management program that measures and monitors the healthcare quality of hospitals in Taiwan. This paper examines the impact of TQIP participation on hospital productivity growth with the application of the Malmquist productivity change index based on data envelopment analysis (DEA). Analyzing operations data from 31 TQIP regional hospitals over the period 1998-2004, we find that TQIP hospitals improved their productivity in the post-TQIP period. This improvement is attributable to quality change and relative efficiency progress. The simultaneous enhancement in both quality and relative efficiency coincides with the philosophy of total quality management (TQM) spirit, and confirms the efficiency improvement and quality assurance functions of TQIP.

Suggested Citation

  • Chang, Shyr-Juh & Hsiao, Hsing-Chin & Huang, Li-Hua & Chang, Hsihui, 2011. "Taiwan quality indicator project and hospital productivity growth," Omega, Elsevier, vol. 39(1), pages 14-22, January.
  • Handle: RePEc:eee:jomega:v:39:y:2011:i:1:p:14-22
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0305-0483(10)00007-1
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Rajiv D. Banker & Hsihui Chang & Ram Natarajan, 2005. "Productivity Change, Technical Progress, and Relative Efficiency Change in the Public Accounting Industry," Management Science, INFORMS, vol. 51(2), pages 291-304, February.
    2. Cosmetatos, G. P. & Eilon, Samuel, 1983. "Effects of productivity definition and measurement on performance evaluation," European Journal of Operational Research, Elsevier, vol. 14(1), pages 31-35, September.
    3. Cook, Wade D. & Seiford, Lawrence M. & Zhu, Joe, 2004. "Models for performance benchmarking: measuring the effect of e-business activities on banking performance," Omega, Elsevier, vol. 32(4), pages 313-322, August.
    4. Maniadakis, Nikolaos & Thanassoulis, Emmanuel, 2004. "A cost Malmquist productivity index," European Journal of Operational Research, Elsevier, vol. 154(2), pages 396-409, April.
    5. Bosworth, Derek & Massini, Silvia & Nakayama, Masako, 2005. "Quality change and productivity improvement in the Japanese economy," Japan and the World Economy, Elsevier, vol. 17(1), pages 1-23, January.
    6. Chang, Hsihui & Cheng, Mei-Ai & Das, Somnath, 2004. "Hospital ownership and operating efficiency: Evidence from Taiwan," European Journal of Operational Research, Elsevier, vol. 159(2), pages 513-527, December.
    7. Aktas, Emel & Ulengin, Fusun & Onsel Sahin, Sule, 2007. "A decision support system to improve the efficiency of resource allocation in healthcare management," Socio-Economic Planning Sciences, Elsevier, vol. 41(2), pages 130-146, June.
    8. Sloan, Frank A. & Picone, Gabriel A. & TaylorJr., Donald H. & Chou, Shin-Yi, 2001. "Hospital ownership and cost and quality of care: is there a dime's worth of difference?," Journal of Health Economics, Elsevier, vol. 20(1), pages 1-21, January.
    9. Rajiv D. Banker & Robert F. Conrad & Robert P. Strauss, 1986. "A Comparative Application of Data Envelopment Analysis and Translog Methods: An Illustrative Study of Hospital Production," Management Science, INFORMS, vol. 32(1), pages 30-44, January.
    10. Du, Juan & Liang, Liang & Chen, Yao & Bi, Gong-bing, 2010. "DEA-based production planning," Omega, Elsevier, vol. 38(1-2), pages 105-112, February.
    11. Bougnol, M.-L. & Dulá, J.H. & Estellita Lins, M.P. & Moreira da Silva, A.C., 2010. "Enhancing standard performance practices with DEA," Omega, Elsevier, vol. 38(1-2), pages 33-45, February.
    12. Kao, Chiang, 2010. "Malmquist productivity index based on common-weights DEA: The case of Taiwan forests after reorganization," Omega, Elsevier, vol. 38(6), pages 484-491, December.
    13. Nyman, John A & Bricker, Dennis L, 1989. "Profit Incentives and Technical Efficiency in the Production of Nursing Home Care," The Review of Economics and Statistics, MIT Press, vol. 71(4), pages 586-594, November.
    14. Syam, Siddhartha S. & Côté, Murray J., 2010. "A location-allocation model for service providers with application to not-for-profit health care organizations," Omega, Elsevier, vol. 38(3-4), pages 157-166, June.
    15. Mark G. Duggan, 2000. "Hospital Ownership and Public Medical Spending," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 115(4), pages 1343-1373.
    16. Chang, Hsihui & Chang, Wen-Jing & Das, Somnath & Li, Shu-Hsing, 2004. "Health care regulation and the operating efficiency of hospitals: Evidence from Taiwan," Journal of Accounting and Public Policy, Elsevier, vol. 23(6), pages 483-510.
    17. N/A, 2004. "Index for 2004," European Union Politics, , vol. 5(4), pages 511-512, December.
    18. Zelenyuk, Valentin, 2006. "Aggregation of Malmquist productivity indexes," European Journal of Operational Research, Elsevier, vol. 174(2), pages 1076-1086, October.
    19. Fare, R. & Grosskopf, S. & Roos, P., 1995. "Productivity and quality changes in Swedish pharmacies," International Journal of Production Economics, Elsevier, vol. 39(1-2), pages 137-144, April.
    20. Fiordelisi, Franco & Molyneux, Phil, 2010. "Total factor productivity and shareholder returns in banking," Omega, Elsevier, vol. 38(5), pages 241-253, October.
    21. Caves, Douglas W & Christensen, Laurits R & Diewert, W Erwin, 1982. "Multilateral Comparisons of Output, Input, and Productivity Using Superlative Index Numbers," Economic Journal, Royal Economic Society, vol. 92(365), pages 73-86, March.
    22. Seshamani, Meena & Gray, Alastair M., 2004. "A longitudinal study of the effects of age and time to death on hospital costs," Journal of Health Economics, Elsevier, vol. 23(2), pages 217-235, March.
    23. Chang, Hsihui & Choy, Hiu Lam & Cooper, William W. & Ruefli, Timothy W., 2009. "Using Malmquist Indexes to measure changes in the productivity and efficiency of US accounting firms before and after the Sarbanes-Oxley Act," Omega, Elsevier, vol. 37(5), pages 951-960, October.
    24. Caves, Douglas W & Christensen, Laurits R & Diewert, W Erwin, 1982. "The Economic Theory of Index Numbers and the Measurement of Input, Output, and Productivity," Econometrica, Econometric Society, vol. 50(6), pages 1393-1414, November.
    25. R. D. Banker & A. Charnes & W. W. Cooper, 1984. "Some Models for Estimating Technical and Scale Inefficiencies in Data Envelopment Analysis," Management Science, INFORMS, vol. 30(9), pages 1078-1092, September.
    26. Shimshak, Daniel G. & Lenard, Melanie L. & Klimberg, Ronald K., 2009. "Incorporating quality into data envelopment analysis of nursing home performance: A case study," Omega, Elsevier, vol. 37(3), pages 672-685, June.
    27. Martin, Stephen & Smith, Peter, 1996. "Explaining variations in inpatient length of stay in the National Health Service," Journal of Health Economics, Elsevier, vol. 15(3), pages 279-304, June.
    28. Seiford, Lawrence M. & Zhu, Joe, 2002. "Modeling undesirable factors in efficiency evaluation," European Journal of Operational Research, Elsevier, vol. 142(1), pages 16-20, October.
    29. Chang, Hsi-Hui, 1998. "Determinants of Hospital Efficiency: the Case of Central Government-owned Hospitals in Taiwan," Omega, Elsevier, vol. 26(2), pages 307-317, April.
    30. Magnus Tambour, 1997. "The Impact of Health Care Policy Initiatives on Productivity," Health Economics, John Wiley & Sons, Ltd., vol. 6(1), pages 57-70, January.
    31. Hung, Jung-Hua & Chang, Li, 2008. "Has cost containment after the National Health Insurance system been successful: Determinants of Taiwan hospital costs," Health Policy, Elsevier, vol. 85(3), pages 321-335, March.
    32. Diego Prior, 2006. "Efficiency and total quality management in health care organizations: A dynamic frontier approach," Annals of Operations Research, Springer, vol. 145(1), pages 281-299, July.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. O'Neill, Liam & Rauner, Marion & Heidenberger, Kurt & Kraus, Markus, 2008. "A cross-national comparison and taxonomy of DEA-based hospital efficiency studies," Socio-Economic Planning Sciences, Elsevier, vol. 42(3), pages 158-189, September.
    2. Bao Hoang Nguyen & Robin C. Sickles & Valentin Zelenyuk, 2021. "What do we know from the vast literature on efficiency and productivity in healthcare? A Systematic Review and Bibliometric Analysis," CEPA Working Papers Series WP092021, School of Economics, University of Queensland, Australia.
    3. Samoilenko, Sergey & Osei-Bryson, Kweku-Muata, 2013. "Using Data Envelopment Analysis (DEA) for monitoring efficiency-based performance of productivity-driven organizations: Design and implementation of a decision support system," Omega, Elsevier, vol. 41(1), pages 131-142.
    4. Barnabé Walheer, 2018. "Cost Malmquist productivity index: an output-specific approach for group comparison," Journal of Productivity Analysis, Springer, vol. 49(1), pages 79-94, February.
    5. Kuan-Chen Chen & Hong-Ming Chen & Li-Nien Chien & Ming-Miin Yu, 2019. "Productivity growth and quality changes of hospitals in Taiwan: does ownership matter?," Health Care Management Science, Springer, vol. 22(3), pages 451-461, September.
    6. Hung, Jung-Hua & Chang, Li, 2008. "Has cost containment after the National Health Insurance system been successful: Determinants of Taiwan hospital costs," Health Policy, Elsevier, vol. 85(3), pages 321-335, March.
    7. Kao, Chiang, 2010. "Malmquist productivity index based on common-weights DEA: The case of Taiwan forests after reorganization," Omega, Elsevier, vol. 38(6), pages 484-491, December.
    8. Juan Aparicio & Fernando Borras & Lidia Ortiz & Jesus T. Pastor & Fernando Vidal, 2019. "Luenberger-type indicators based on the weighted additive distance function," Annals of Operations Research, Springer, vol. 278(1), pages 195-213, July.
    9. Suvash Khanal & Bharat P. Bhatta, 2017. "Evaluating Efficiency of Personnel in Nepalese Commercial Banks," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 23(4), pages 379-394, November.
    10. Hsiao-Yin Chen & Chin-wei Huang & Yung-Ho Chiu, 2017. "An intertemporal efficiency and technology measurement for tourist hotel," Journal of Productivity Analysis, Springer, vol. 48(1), pages 85-96, August.
    11. Dinesh R. Pai & Fatma Pakdil & Nasibeh Azadeh-Fard, 2024. "Applications of data envelopment analysis in acute care hospitals: a systematic literature review, 1984–2022," Health Care Management Science, Springer, vol. 27(2), pages 284-312, June.
    12. Adel Hatami-Marbini & Aliasghar Arabmaldar & John Otu Asu, 2022. "Robust productivity growth and efficiency measurement with undesirable outputs: evidence from the oil industry," OR Spectrum: Quantitative Approaches in Management, Springer;Gesellschaft für Operations Research e.V., vol. 44(4), pages 1213-1254, December.
    13. Ferreira, D.C. & Marques, R.C., 2019. "Do quality and access to hospital services impact on their technical efficiency?," Omega, Elsevier, vol. 86(C), pages 218-236.
    14. Diego Prior, 2006. "Efficiency and total quality management in health care organizations: A dynamic frontier approach," Annals of Operations Research, Springer, vol. 145(1), pages 281-299, July.
    15. Yauheniya Varabyova & Jonas Schreyögg, 2018. "Integrating quality into the nonparametric analysis of efficiency: a simulation comparison of popular methods," Annals of Operations Research, Springer, vol. 261(1), pages 365-392, February.
    16. Audibert, Martine & Mathonnat, Jacky & Pelissier, Aurore & Huang, Xiao Xian & Ma, Anning, 2013. "Health insurance reform and efficiency of township hospitals in rural China: An analysis from survey data," China Economic Review, Elsevier, vol. 27(C), pages 326-338.
    17. Walheer, Barnabé, 2018. "Disaggregation of the cost Malmquist productivity index with joint and output-specific inputs," Omega, Elsevier, vol. 75(C), pages 1-12.
    18. Kao, Chiang & Liu, Shiang-Tai, 2016. "A parallel production frontiers approach for intertemporal efficiency analysis: The case of Taiwanese commercial banks," European Journal of Operational Research, Elsevier, vol. 255(2), pages 411-421.
    19. Jia-Ching Juo & Yu-Hui Lin & Tsai-Chia Chen, 2015. "Productivity change of Taiwanese farmers’ credit unions: a nonparametric metafrontier Malmquist–Luenberger productivity indicator," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 23(1), pages 125-147, March.
    20. Tsui‐Yueh Cho, 2020. "Cost metafrontier approach for measuring the Malmquist productivity index: An example of bank groups formed after the financial reform in Taiwan," Pacific Economic Review, Wiley Blackwell, vol. 25(4), pages 475-494, October.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jomega:v:39:y:2011:i:1:p:14-22. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/375/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.