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Productive innovations in hospitals: an empirical research on the relation between technology and productivity in the Dutch hospital industry

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  • Jos L. T. Blank
  • Bart L. Van Hulst

Abstract

This paper studies the relationship between technology and productivity in Dutch hospitals. In most studies technical change is measured by a proxy, namely a time trend. In practice however, innovations slowly spread over all hospitals and so different hospitals are operating under different technologies at the same point in time. In this study we explicitly inventory specific and well‐known innovations in the Dutch hospital industry in the past ten years. These innovations are aggregated into a limited number of homogenous innovation clusters, which are measured by a set of technology index numbers. The index numbers are included in the cost function specification and estimation. The results indicate that technical change is non‐neutral and output‐ biased and that some technologies affect cost in beneficial ways. Copyright © 2008 John Wiley & Sons, Ltd.

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  • Jos L. T. Blank & Bart L. Van Hulst, 2009. "Productive innovations in hospitals: an empirical research on the relation between technology and productivity in the Dutch hospital industry," Health Economics, John Wiley & Sons, Ltd., vol. 18(6), pages 665-679, June.
    • Handle: RePEc:wly:hlthec:v:18:y:2009:i:6:p:665-679
    DOI: 10.1002/hec.1395
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    1. Laurence Baker & Joanne Spetz, 1999. "Managed Care and Medical Technology Growth," NBER Chapters, in: Frontiers in Health Policy Research, volume 2, pages 27-52, National Bureau of Economic Research, Inc.
    2. Albert Okunade, 2001. "Cost-Output Relation, Technological Progress, and Clinical Activity Mix of US Hospital Pharmacies," Journal of Productivity Analysis, Springer, vol. 16(2), pages 167-193, September.
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    8. Blank, Jos L. T. & Vogelaar, Iris, 2004. "Specifying technical change: a research on the nature of technical change in Dutch hospital industry," The Quarterly Review of Economics and Finance, Elsevier, vol. 44(3), pages 448-463, July.
    9. J.L.T. Blank & A.H.Q.M. Merkies, 2004. "Empirical assessment of the economic behaviour of Dutch general hospitals," Health Economics, John Wiley & Sons, Ltd., vol. 13(3), pages 265-280, March.
    10. Ana Rodríguez‐Álvarez & C. A. Knox Lovell, 2004. "Excess capacity and expense preference behaviour in National Health Systems: an application to the Spanish public hospitals," Health Economics, John Wiley & Sons, Ltd., vol. 13(2), pages 157-169, February.
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    Cited by:

    1. Xiaohui You & Albert A. Okunade, 2017. "Income and Technology as Drivers of Australian Healthcare Expenditures," Health Economics, John Wiley & Sons, Ltd., vol. 26(7), pages 853-862, July.
    2. Nistor Cristina Silvia & Ștefănescu Cristina Alexandrina & Crișan Andrei-Răzvan, 2017. "Performance Through Efficiency in the Public Healthcare System – A DEA Approach in an Emergent Country," Studia Universitatis Babeș-Bolyai Oeconomica, Sciendo, vol. 62(1), pages 31-49, April.
    3. Jos L. T. Blank & Bart L. van Hulst & Vivian G. Valdmanis, 2017. "Concentrating Emergency Rooms: Penny‐Wise and Pound‐Foolish? An Empirical Research on Scale Economies and Chain Economies in Emergency Rooms in Dutch Hospitals," Health Economics, John Wiley & Sons, Ltd., vol. 26(11), pages 1353-1365, November.
    4. Jos L. T. Blank & Vivian G. Valdmanis, 2015. "Technology diffusion in hospitals: a log odds random effects regression model," International Journal of Health Planning and Management, Wiley Blackwell, vol. 30(3), pages 246-259, July.

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