TY - JOUR
T1 - The efficiency frontier of for-profit hospitals
AU - Harrison, Jeffrey P.
AU - Spaulding, Aaron
AU - Mouhalis, Paul
PY - 2015/3/1
Y1 - 2015/3/1
N2 - This study evaluates the efficiency of small and large for-profit hospitals using Data Envelopment Analysis (DEA). For this study, small for-profit hospitals are 35 beds or less which is consistent with the Federal designation of critical access hospitals (CAH). Large for-profit hospitals are 36 beds and greater. Results indicate overall efficiency in small for-profit hospitals was 60% in 2013. In contrast, the overall efficiency in large for-profit hospitals was 71% in 2013. The number of small for-profit hospitals operating on the efficiency frontier was 18 which represent 12%. Similarly, the number of large for-profit hospitals operating on the efficiency frontier was 49 which represent 8%. This clearly documents for-profit hospitals' overall efficiency increases with greater size. Hospital executives, healthcare policymakers, taxpayers and other stakeholders benefit from studies that improve hospital efficiency. From a policy perspective, this study demonstrates a positive association between increased hospital size and increased efficiency within the for-profit hospital industry.
AB - This study evaluates the efficiency of small and large for-profit hospitals using Data Envelopment Analysis (DEA). For this study, small for-profit hospitals are 35 beds or less which is consistent with the Federal designation of critical access hospitals (CAH). Large for-profit hospitals are 36 beds and greater. Results indicate overall efficiency in small for-profit hospitals was 60% in 2013. In contrast, the overall efficiency in large for-profit hospitals was 71% in 2013. The number of small for-profit hospitals operating on the efficiency frontier was 18 which represent 12%. Similarly, the number of large for-profit hospitals operating on the efficiency frontier was 49 which represent 8%. This clearly documents for-profit hospitals' overall efficiency increases with greater size. Hospital executives, healthcare policymakers, taxpayers and other stakeholders benefit from studies that improve hospital efficiency. From a policy perspective, this study demonstrates a positive association between increased hospital size and increased efficiency within the for-profit hospital industry.
KW - DEA
KW - Data envelopment analysis
KW - For-profit hospital efficiency
KW - Hospital efficiency
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M3 - Article
AN - SCOPUS:84941095349
SN - 1078-6767
VL - 41
JO - Topics in Health Care Financing
JF - Topics in Health Care Financing
IS - 4
ER -