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The Cost Efficiency of Turkish Hospitals: A Stochastic Frontier Analysis

Author

Listed:
  • Emre ATILGAN

    (Trakya Üniveristesi)

  • Zafer ÇALIŞKAN

    (Hacettepe Üniversitesi)

Abstract

The purpose of this study is to estimate cost efficiencies of public hospitals in Turkey using data for the period 2007 to 2009. Hospital cost efficiencies are estimated using the Stochastic Frontier Analysis method with a translog cost function. The results indicate that performance-based supplementary payment system does not increase the cost efficiency of hospitals. According to the inefficiency effects model, occupancy rates are positively correlated with the efficiency scores. On the other hand, hospitals efficiency is inversely associated with the population and development levels of regions. In addition, there is a positive correlation between the hospital capacity and efficiency.

Suggested Citation

  • Emre ATILGAN & Zafer ÇALIŞKAN, 2015. "The Cost Efficiency of Turkish Hospitals: A Stochastic Frontier Analysis," Iktisat Isletme ve Finans, Bilgesel Yayincilik, vol. 30(355), pages 09-30.
    • Handle: RePEc:iif:iifjrn:v:30:y:2015:i:355:p:09-30
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    Citations

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    Cited by:

    1. Emre Atilgan & Dilek Kilic & Hasan Murat Ertugrul, 2017. "The dynamic relationship between health expenditure and economic growth: is the health-led growth hypothesis valid for Turkey?," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 18(5), pages 567-574, June.

    More about this item

    Keywords

    Hospital Cost; Efficiency; Stochastic Frontier Analysis;
    All these keywords.

    JEL classification:

    • I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets

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