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Productivity changes in Taiwanese hospitals and the national health insurance

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  • Shih-Neng Chen

Abstract

In 1995 Taiwan launched the National Health Insurance (NHI) programme, which changed the method payment for hospital finances. This article examines the impact of this financial reform on hospital productivity during this period. Using the Malmquist productivity index approach, a hospital's change in productivity is decomposed into quality, efficiency, and technological change components. Factors affecting efficiency and productivity are also assessed. Results indicate that most hospitals experienced a significant productivity slowdown due to declines in technology and quality of service, but efficiency did significantly improve. The inception of the NHI programme does greatly improve a hospital's productivity and quality of service, but decreases efficiency. Public hospitals' efficiency improvements are significant.

Suggested Citation

  • Shih-Neng Chen, 2006. "Productivity changes in Taiwanese hospitals and the national health insurance," The Service Industries Journal, Taylor & Francis Journals, vol. 26(4), pages 459-477, June.
    • Handle: RePEc:taf:servic:v:26:y:2006:i:4:p:459-477
    DOI: 10.1080/02642060600622355
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    Cited by:

    1. Shao-Wei Yang & Kuo-Chung Chu & Victor B. Kreng, 2021. "The Impact of Global Budgeting on the Efficiency of Healthcare under a Single-Payer System in Taiwan," IJERPH, MDPI, vol. 18(20), pages 1-14, October.
    2. Chia-Hsuan Wu & Ching-Cheng Chang & Po-Chi Chen & Ken-Nan Kuo, 2013. "Efficiency and productivity change in Taiwan’s hospitals: a non-radial quality-adjusted measurement," 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. 21(2), pages 431-453, March.
    3. Sulku, Seher Nur, 2011. "The impacts of health care reforms on the efficiency of the Turkish public hospitals: Provincial markets," MPRA Paper 29598, University Library of Munich, Germany.
    4. Pinar Guven Uslu & Thuy Pham Linh, 2008. "Effects of Changes in Public Policy on Efficiency and Productivity of General Hospitals in Vietnam," Working Paper series, University of East Anglia, Centre for Competition Policy (CCP) 2008-30, Centre for Competition Policy, University of East Anglia, Norwich, UK..
    5. Younhee Kim & Dong-hyun Oh & Minah Kang, 2016. "Productivity changes in OECD healthcare systems: bias-corrected Malmquist productivity approach," International Journal of Health Planning and Management, Wiley Blackwell, vol. 31(4), pages 537-553, October.
    6. Jeong Hoon Choi & Imsu Park & Ilyoung Jung & Asoke Dey, 2017. "Complementary effect of patient volume and quality of care on hospital cost efficiency," Health Care Management Science, Springer, vol. 20(2), pages 221-231, June.
    7. Jui-Hsiang Wang & Chun-Chu Liu, 2017. "Changes in total factor productivity in National Health Insurance system of Taiwan between 2005 and 2014," Advances in Management and Applied Economics, SCIENPRESS Ltd, vol. 7(4), pages 1-2.

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