Frontier efficiency measurement in health care: A review of empirical techniques and selected applications

Medical Care Research and Review

Volumn 61, Issue 2, 2004, Pages 135-170

  Worthington, Andrew C ^a  

^a QUEENSLAND UNIVERSITY OF TECHNOLOGY   (Australia)

Author keywords

Frontier efficiency measurement; Health care

Indexed keywords

ANALYSIS; HEALTH CARE; HEALTH CARE COST; HEALTH MAINTENANCE ORGANIZATION; HEALTH SERVICE; MEASUREMENT; REVIEW;

AUSTRALIA; DELIVERY OF HEALTH CARE; EFFICIENCY, ORGANIZATIONAL; EMPIRICAL RESEARCH; HEALTH SERVICES RESEARCH; HUMANS; SYSTEMS ANALYSIS;

EID: 2442505554     PISSN: 10775587     EISSN: None     Source Type: Journal    
DOI: 10.1177/1077558704263796     Document Type: Review

References (57)

1. Alexander, J. A., J. R. C. Wheeler, T. A. Nahra, and C. H. Lemack. 1998. Managed care and technical efficiency in outpatient substance abuse treatment units. Journal of Behavioural Health Services and Research 25 (4): 377-96.
2. Banker, R. D., A. Charnes, W. W. Cooper, and A. Maindiratta. 1988. A comparison of DEA and translog estimates of production frontiers using simulated observations from a known technology. In Applications of modern production theory: Efficiency and productivity, edited by A. Dogramaci and R. Färe. Boston: Kluwer.
3. Banker, R. D., R. F. Conrad, and R. P. Strauss. 1986. A comparative application of data envelopment analysis and translog methods: An illustrative study of hospital production. Management Science 32 (1): 30-44.
4. Battese, G. E., and T. J. Coelli. 1995. A model for technical inefficiency effects in a stochastic frontier production function for panel data. Empirical Economics 20 (2): 325-32.
5. Bradford, W. D., A. N. Kleit, M. A. Krousel-Wood, and R. N. Re. 2001. Stochastic frontier estimation of cost models within the hospital. Review of Economics and Statistics 83 (2):302-9.
6. Brown, H. S. 2003. Managed care and technical efficiency. Health Economics 12 (2): 149-58.
7. Burgess, J. F., and P. W. Wilson. 1998. Variation in inefficiency among US hospitals. INFOR, Canadian Journal of Operational Research and Information Processing 36 (3): 84-102.
8. Byrnes, P., and V. Valdmanis. 1993. Analyzing technical and allocative efficiency of hospitals. In Data envelopment analysis: Theory, methodology and applications, edited by A. Charnes, W. W. Cooper, A. Y. Lewin, and L. M. Seiford. Boston: Kluwer.
9. Charnes, A., W. W. Cooper, A. Y. Lewin, and L. M. Seiford. 1995. Data envelopment analysis: Theory, methodology and applications. Boston: Kluwer.
10. Chattopadhyay, S., and S. C. Ray. 1996. Technical, scale and size efficiency in nursing home care: A nonparametric analysis of Connecticut homes. Health Economics 5 (4): 363-73.
11. Chilingerian, J. A. 1993. Exploring why some physicians' hospital practices are more efficient: Taking DEA inside the hospital. In Data envelopment analysis: Theory, methodology and applications, edited by A. Charnes, W. W. Cooper, A. Y. Lewin, and L. M. Seiford. Boston: Kluwer.
12. Chirikos, T. N. 1998. Identifying efficiently and economically operated hospitals: The prospects and pitfalls of applying frontier regression techniques. Journal of Health Politics 23 (6): 879-904.
13. Chirikos, T. N., and A. M. Sear. 2000. Measuring hospital efficiency: A comparison of two approaches. Health Services Research 34 (6): 1389-1408.
14. Coelli, T., D. S. P. Rao, and G. Battese. 1998. An introduction to efficiency and productivity analysis. Boston: Kluwer.
15. Defelice, L. C., and W. D. Bradford. 1997. Relative inefficiencies in production between solo and group practice physicians. Health Economics 6 (5): 455-65.
16. Dor, A. 1994. Non-minimum cost functions and the stochastic frontier: On applications to health care providers. Journal of Health Economics 13 (3): 329-34.
17. Färe, R., S. Grosskopf, B. Lindgren, and P. Roos. 1993. Productivity developments in Swedish hospitals: A Malmquist output index approach. In Data envelopment analysis: Theory, methodology and applications, edited by A. Charnes, W. W. Cooper, A. Y. Lewin, and L. M. Seiford. Boston: Kluwer.
18. Fizel, J. L., and T. S. Nunnikhoven. 1992. Technical efficiency of for-profit and non-profit nursing homes. Managerial and Decision Economics 13 (5): 429-39.
19. Fried, H. O., C. A. Lovell, and S. S. Schmidt. 1993. The measurement of productive efficiency: Techniques and applications. New York: Oxford University Press.
20. Gerdtham, U. G., M. Löthgren, M. Tambour, and M. Rehnberg. 1999. Internal markets and health care efficiency: A multiple-output stochastic frontier analysis. Health Economics 8 (2): 151-64.
21. Gertler, P. 1989. Subsidies, quality and the regulation of nursing homes. Journal of Public Economics 38 (1): 33-52.
22. Gertler, P., and D. M. Waldman. 1992. Quality-adjusted cost functions and policy evaluation in the nursing home industry. Journal of Political Economy 100 (6): 1232-56.
23. Giuffrida, A., and H. Gravelle. 2001. Measuring performance in primary care: Econometric analysis and DEA. Applied Economics 33 (2): 163-75.
24. Gonzalez Lopez-Valcarcel, B., and P. Barber Perez. 1996. Changes in the efficiency of Spanish public hospitals after the introduction of program-contracts. Investicaionnes Económicas 20 (3): 377-402.
25. Grosskopf, S., and V. Valdmanis. 1987. Measuring hospital performance: A non-parametric approach. Journal of Health Economics 6 (1): 89-107.
26. Hadley, J., and S. Zuckerman. 1994. The role of efficiency measurement in hospital rate setting. Journal of Health Economics 13 (3): 335-40.
27. Hofler, R. A., and B. Rungeling. 1994. US nursing homes: Are they cost efficient? Economics Letters 44 (3): 301-5.
28. Hollingsworth, B., P. J. Dawson, and N. Maniadakis. 1999. Efficiency measurement of health care: A review of non-parametric methods and applications. Health Care Management Science 2 (3): 161-72.
29. Kooreman, P. 1994a. Data envelopment analysis and parametric frontier estimation: Complementary tools. Journal of Health Economics 13 (3): 345-46.
30. -. 1994b. Nursing home care in the Netherlands: Anonparametric efficiency analysis. Journal of Health Economics 13 (3): 301-16.
31. Ley, E. 1991. Eficiencia productiva: Un estudio aplicado al sector hospitalario. Investicaionnes Económicas 15 (1): 71-88.
32. Linna, M. 1998. Measuring hospital cost efficiency with panel data models. Health Economics 7 (5): 415-27.
33. Linna, M., U. Häkkinen, and E. Linakko. 1998. An econometric study of costs of teaching and research in Finnish hospitals. Health Economics 7 (5): 291-305.
34. Lo, J. C., K. S. Shih, and K. L. Chen. 1996. Technical efficiency of the general hospitals in Taiwan: An application of DEA. Academia Economic Papers 24 (3): 275-96.
35. Luoma, K., M. L. Järviö, I. Suoniemi, and R. T. Hjerppe. 1996. Financial incentives and productive efficiency in Finnish health centres. Health Economics 5 (5): 435-45.
36. Magnussen, J. 1996. Efficiency measurement and the operationalisation of hospital production. Health Services Research 31 (1): 21-37.
37. Maniadakis, N., and E. Thanassoulis. 2000. Assessing productivity changes in UK hospitals reflecting technology and input prices. Applied Economics 32 (12): 1575-89.
38. Mobley, L. R., and J. Magnussen. 1998. An international comparison of hospital efficiency: Does institutional environment matter? Applied Economics 30 (8):1089-1100.
39. Newhouse, J. P. 1994. Frontier estimation: How useful a tool for health economics? Journal of Health Economics 13 (3): 317-22.
40. Nunamaker, T. R. 1983. Measuring routine nursing service efficiency: A comparison of cost per patient day and data envelopment analysis models. Health Services Research 18 (2): 183-205.
41. Nyman, J. A., and D. L. Bricker. 1989. Profit incentives and technical efficiency in the production of nursing home care. Review of Economics and Statistics 71 (4): 586-94.
42. Palmer, S., and D. J. Torgerson. 1999. Definitions of efficiency. British Medical Journal 318: 1136.
43. Parkin, D., and B. Hollingsworth. 1997. Measuring production efficiency of acute hospitals in Scotland, 1991-94: Validity issues in data envelopment analysis. Applied Economics 29 (11): 1425-33.
44. Puig-Junoy, J. 1998. Technical efficiency in the clinical management of critically ill patients. Health Economics 7 (3): 263-77.
45. Rollins, J., K. Lee, Y. Xu, and Y. A. Ozcan. 2001. Longitudinal study of health maintenance organization efficiency. Health Services Management Research 14 (2): 249-62.
46. Rosenman, R., K. Siddharthan, and M. Ahern. 1997. Output efficiency of health maintenance organizations in Florida. Health Economics 6 (3): 295-302.
47. Rosko, M. D. 2001. Cost efficiency of US hospitals: A stochastic frontier approach. Health Economics 10 (6): 539-51.
48. Skinner, J. 1994. What do stochastic frontier cost functions tell us about inefficiency? Journal of Health Economics 13 (3): 323-28.
49. Street, A. 2003. How much confidence should we place in efficiency estimates? Health Economics 12 (11): 895-907.
50. Street, A., and R. Jacobs. 2002. Relative performance evaluation of the English acute hospital sector. Applied Economics 34 (9): 1109-19.
51. Thanassoulis, E., A. Boussofiane, and R. G. Dyson. 1996. A comparison of data envelopment analysis and ratio analysis as tools for performance measurement. OMEGA, International Journal of Management Science 24 (3): 229-44.
52. Valdmanis, V. 1992. Sensitivity analysis for DEA models. An empirical example using public vs. NFP hospitals. Journal of Public Economics 48 (2): 185-205.
53. Vitaliano, D. F., and M. Toren. 1994a. Cost and efficiency in nursing homes: A stochastic frontier approach. Journal of Health Economics 13 (3): 281-300.
54. -. 1994b. Frontier analysis: A reply to Skinner, Dor and Newhouse. Journal of Health Economics 13 (3): 341-43.
55. -. 1996. Hospital cost and efficiency in a regime of stringent regulation. Eastern Economic Journal 22 (2): 161-75.
56. Wagstaff, A. 1989. Estimating efficiency in the hospital sector: A comparison of three statistical cost frontier models. Applied Economics 21 (5): 659-72.
57. Zuckerman, S., J. Hadley, and L. Iezzoni. 1994. Measuring hospital efficiency with frontier cost functions. Journal of Health Economics 13 (3): 255-80.