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An Analysis of Hospital Efficiency and Productivity Growth Using the Luenberger Productivity Indicator

Author

Listed:
  • Barros, Carlos Pestana

    (Universidade Técnica de Lisboa)

  • Menezes, Antonio

    (University of the Azores)

  • Vieira, José António Cabral

    (University of the Azores)

  • Peypoch, Nicolas

    (Université de Perpignan)

  • Solonandrasana, Bernardin

    (Université de Perpignan)

Abstract

We analyze the efficiency and productivity growth of a representative sample of Portuguese hospitals from 1997 to 2004, using an innovative approach by employing the directional distance function and the Luenberger productivity indicator. The primary advantage of our approach is that both input contractions and output expansions are considered. Our model generates a productivity indicator that is decomposed into the usual constituents of productivity growth: technological change and efficiency change. The results show that, on average, Portuguese hospitals did not experience productivity growth during the period analyzed. In addition, the incidence of positive productivity growth across Portuguese hospitals was remarkably low.

Suggested Citation

  • Barros, Carlos Pestana & Menezes, Antonio & Vieira, José António Cabral & Peypoch, Nicolas & Solonandrasana, Bernardin, 2007. "An Analysis of Hospital Efficiency and Productivity Growth Using the Luenberger Productivity Indicator," IZA Discussion Papers 2689, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp2689
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    Cited by:

    1. Jui-Hsiang Wang, & Chun-Chu Liu, 2017. "Nursing manpower and productivity in medical service industry," Journal of Economic and Financial Studies (JEFS), LAR Center Press, vol. 5(2), pages 7-13, April.
    2. Karelys Guzmán-Finol, 2017. "¿Qué hay detrás de un cambio en la productividad hospitalaria?," Chapters, in: Jaime Bonet & Karelys Guzmán-Finol & Lucas Wilfried Hahn-De-Castro (ed.), La salud en Colombia: una perspectiva regional, chapter 7, pages 211-247, Banco de la Republica de Colombia.
    3. Sharon Hadad & Yossi Hadad & Tzahit Simon-Tuval, 2013. "Determinants of healthcare system’s efficiency in OECD countries," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 14(2), pages 253-265, April.
    4. Diogo Ferreira & Rui Marques, 2015. "Did the corporatization of Portuguese hospitals significantly change their productivity?," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 16(3), pages 289-303, April.
    5. Galvis-Aponte Luis Armando & Hahn-De-Castro Lucas Wilfried, 2016. "Crecimiento municipal en Colombia: el papel de las externalidades espaciales, el capital humano y el capital físico," Revista Sociedad y Economía, Universidad del Valle, CIDSE, issue 31, pages 11-286, May.
    6. 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.
    7. Antonio José Orozco-Gallo, 2017. "Una aproximación regional a la eficiencia y productividad de los hospitales públicos colombianos," Chapters, in: Jaime Bonet & Karelys Guzmán-Finol & Lucas Wilfried Hahn-De-Castro (ed.), La salud en Colombia: una perspectiva regional, chapter 6, pages 173-209, Banco de la Republica de Colombia.
    8. Esso-hanam Atake, 2015. "Technical efficiency of public hospitals in Togo: A directional distance function approach," Economics Bulletin, AccessEcon, vol. 35(3), pages 1752-1764.
    9. Karelys Guzmán Finol, 2015. "¿Qué hay detrás de un cambio en la productividad hospitalaria?," Documentos de trabajo sobre Economía Regional y Urbana 215, Banco de la Republica de Colombia.
    10. 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.
    11. Epure, Mircea & Kerstens, Kristiaan & Prior, Diego, 2008. "Benchmarking and Total Factor Productivity: A Luenberger Decomposition within the Banking Sector," Efficiency Series Papers 2008/03, University of Oviedo, Department of Economics, Oviedo Efficiency Group (OEG).

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    More about this item

    Keywords

    efficiency; productivity; Luenberger productivity indicator; hospitals; technological change;
    All these keywords.

    JEL classification:

    • I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • L5 - Industrial Organization - - Regulation and Industrial Policy

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