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Measurement of hospital efficiency, using a latent class stochastic frontier model

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  • Carlos Pestana Barros
  • António Gomes de Menezes
  • Jos頠 Cabral Vieira

Abstract

This article analyses the technical efficiency of Portuguese hospitals from 1997 to 2008 with the latent class frontier model, enabling the identification of different segments in the cost frontier. It is found that there are three statistically significant segments in the sample, leading to the conclusion that no common health policy can be applicable to all the hospitals analysed, calling rather for policies conceived for each hospital segment identified. The health policy based in the identified segments enables a more accurate and cost effective management of resources.

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  • Carlos Pestana Barros & António Gomes de Menezes & Jos頠 Cabral Vieira, 2013. "Measurement of hospital efficiency, using a latent class stochastic frontier model," Applied Economics, Taylor & Francis Journals, vol. 45(1), pages 47-54, January.
    • Handle: RePEc:taf:applec:45:y:2013:i:1:p:47-54
    DOI: 10.1080/00036846.2011.579061
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    2. Roberto Colombi & Gianmaria Martini & Giorgio Vittadini, 2017. "Determinants of transient and persistent hospital efficiency: The case of Italy," Health Economics, John Wiley & Sons, Ltd., vol. 26(S2), pages 5-22, September.
    3. Cláudia Araújo & Carlos Barros & Peter Wanke, 2014. "Efficiency determinants and capacity issues in Brazilian for-profit hospitals," Health Care Management Science, Springer, vol. 17(2), pages 126-138, June.
    4. Kejia Chu & Ning Zhang & Zhongfei Chen, 2015. "The Efficiency and Its Determinants for China’s Medical Care System: Some Policy Implications for Northeast Asia," Sustainability, MDPI, vol. 7(10), pages 1-20, October.
    5. Michael Danquah & Peter Quartey, 2015. "Examining the determinants of efficiency using a latent class stochastic frontier model," Cogent Economics & Finance, Taylor & Francis Journals, vol. 3(1), pages 1124741-112, December.
    6. Vo Hong Tu & Nguyen Duy Can & Yoshifumi Takahashi & Steven W. Kopp & Mitsuyasu Yabe, 2019. "Technical and environmental efficiency of eco-friendly rice production in the upstream region of the Vietnamese Mekong delta," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 21(5), pages 2401-2424, October.

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