2017
DOI: 10.1002/mde.2846
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Efficiency of U.S. hospitals between 2001 and 2011

Abstract: This study focuses on finding the trend of efficiency in the healthcare industry in recent years. We applied stochastic frontier analysis and data envelopment analysis methods to capture the efficiency of 1,471 hospitals and found a sign of the Baumol effect, which is detected by the decreasing trend of hospital efficiency with increasing trend of labor costs. Furthermore, we compared the results of both approaches (stochastic frontier and data envelope analyses) in capturing efficiency scores and suggest the … Show more

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Cited by 14 publications
(5 citation statements)
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“…The following health economic factors, one output and six inputs, were based on previous studies, 3842 and were obtained from the China Health Statistics Yearbook. OE it is the number of outpatient and emergency room visits per 1000 personnel (output).…”
Section: Methodsmentioning
confidence: 99%
“…The following health economic factors, one output and six inputs, were based on previous studies, 3842 and were obtained from the China Health Statistics Yearbook. OE it is the number of outpatient and emergency room visits per 1000 personnel (output).…”
Section: Methodsmentioning
confidence: 99%
“…With regard to comparison among methodological approaches area, the authors have included articles that have made a comparison among different econometrics approaches to determine the e ciency scores in the healthcare sector. Some authors have explored the comparison between Data Envelopment Analysis (DEA) and Stochastic Frontier Analysis (SFA) [49,22,152], others have examined the comparison between DEA and Goal Programming (GP) and DEA and Regression Analysis (RA), preferring DEA + GP [55]. Furthermore, others have shown the comparison between DEA and Order-m [53] or DEA and Balanced Scorecard [118], and nally, some authors have displayed other types of combinations [124,4,25].…”
Section: Content Analysismentioning
confidence: 99%
“…Both techniques can distinguish among inefficient hospitals [ 52 ]. Regarding the paragraphs mentioned above and the research scope, the selection of multi-inputs and multi-outputs was adopted for the SFA translog formula, which has been applied in [ 74 ]. They applied these two approaches to evaluate the efficiency of the US 1471 hospitals and showed the Baumol effect once hospitals’ effectiveness declined with the trend of the labour costs soar gradually.…”
Section: Literature Reviewmentioning
confidence: 99%