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The Impact of Technical Change on Healthcare Production and Efficiency

Year 2018, Volume: 21 Issue: 4, 641 - 653, 29.12.2018

Abstract

This article measures the technical efficiency of healthcare production and estimates the impact of technical change on healthcare across OECD countries between 2000 and 2011, based on a 34 country panel data set, extending the study by Fare et al. (1997). The study adopted a DEA (Data Envelopment Analysis) based output-oriented efficiency measure to obtain the productive efficiency of each country for all given years, and used the Malmquist Index to determine the productivity growth and decompose the technical change from efficiency changes over the years. It is found that the production frontier shifted up around 0.8% annually between 2000 and 2011, with a cumulative 8.5% technical and 7.2% productivity increase over the period. Technological progress seems to be stable over time, while most of the fluctuations in productivity growth come from changes in efficiency due to utilization of new technologies.

References

  • 1. Aaron H. J. (1991) Serious And Unstable Condition: Financing America's Health Care Washington: The Brookings Institution. 2. Banker R. D., Charnes A. and Cooper W. W. (1984) Some Models For Estimatingtechnical And Scale İnefficiencies İn Data Envelopment Analysis. Management Science 30(9): 1078–92. 3. Caves D. W., Christensen L. R. and Diewert W. E. (1982) The Economic Theory Of İndex Numbers And The Measurement Of İnput, Output And Productivity. Econometrica 50(6): 1393. 4. Charnes A., Cooper W. W. and Rhodes E. (1978) Measuring The Efficiency Of Decision Making Units. European Journal of Operational Research 2(6): 429–44. 5. Deb A. and Ray S., (2013) Economic Reforms and Total Factor Productivity Growth of Indian Manufacturing: An Inter-State Analysis. Working papers 2013-04, University of Connecticut, Department of Economics revised Apr 2013. 6. Färe R., Grosskopf S., Lindgren B. and Roos P. (1989) Productivity Developments İn Swedish Hospitals: A Malmquist Output İndex Approach. Discussion paper 89-3. Carbondale, IL: Southern Illinois University. 7. Färe R. and Grosskopf S. (1992) Malmquist Productivity Indexes and Fisher Ideal Indexes. The Economic Journal 102(410): 158-160. 8. Färe R., Grosskopf S., Norris M. and Zhang Z. (1994) Productivity Growth, Technical Progress, and Efficiency Change in Industrialized Countries. American Economic Review 84(1): 66-83. 9. Färe R., Grosskopf S., Lindgren B. and Poullier J. P. (1997) Productivity Growth İn Health Care Delivery. Medical Care 35(4): 354–366. 10. Farrell M. J. (1957) The Measurement Of Productive Efficiency. Journal of Royal Statistical Society (Series A) 120(3): 253–281. 11. Hollingsworth B. (2008). The Measurement Of Efficiency and Productivity of Health Care Delivery. Health Economics 17(10): 1107–1128. 12. Malmquist S. (1953) Index Numbers and Indifference Curves. Trab Estat 4(2): 209- 242. 13. Moscone F., Tosetti E., Costantini M. and Ali M. (2013) The Impact of Scientific Research on Health Care: Evidence From The OECD Countries. Economic Modelling 32: 325-332. 14. Muñiz M., Paradi J., Ruggiero J. and Yang Z. (2006) Evaluating Alternative DEA Models Used To Control For Non-Discretionary İnputs. Computers and Operations Research 33(5): 1173-1183 15. Newhouse J. P. (1993) An Iconoclastic View of Health Cost Containment. Health Affairs 12: 152-171. 16. Nishimuzu M. and Page J. M. (1982) Total Factor Productivity Growth, Technological Progress And Technical Efficiency Change: Dimensions Of Productivity Change İn Yugoslavia 1965–1978. Economics Journal 92(368): 920–936. 17. Nunamaker T. R. and Lewin A. Y. (1983) Measuring Routine Nursing Efficiency: A Comparison Of Cost Per Patient Day And Data Envelopment Analysis Models/Comment. Health Services Research 18(2): 183–208. 18. O’Neill L., Rauner M., Heidelberger K. and Kraus M. (2008) A Cross National Comparison And Taxonomy Of DEA Based Hospital Efficiency Studies. Socio- Economic Planning Sciences 42(3): 158–189. 19. Ozcan Y. A. (2008) Health Care Benchmarking And Performance Evaluation An Assessment Using Data Envelopment Analysis (DEA). Springer, Newton. 20. Ray S. (2004) Data Envelopment Analysis: Theory And Techniques For Economics And Operations Research. Cambridge: Cambridge University Press. 21. Retzlaff-Roberts D., Chang C. F. and Rubin R. M. (2004) Technical Efficiency in The Use of Health Care Resources: A Comparison of OECD Countries. Health Policy 69(1): 55–72. 22. Ruggiero J. (1998) Non-Discretionary Inputs in Data Envelopment Analysis. European Journal of Operational Research 111(3): 461-469. 23. Schwartz W. B. and Mendelson D. N. (1994) Eliminating Waste and Inefficiency Can Do Little to Contain Costs. Health Affairs 13: 224-238. 24. Sherman H. D. (1984) Hospital Efficiency Measurement And Evaluation: Empirical Test Of A New Technique. Medical Care 22(10): 922–938. 25. Wang J., Jamison D. T., Bos E., Preker A. and Peaboy J. (1999) Measuring Country Performance on Health: Selected Indicators For 115 Countries. Human Development Network, Health, Nutrition and Population Studies. Washington, DC: World Bank. 26. World Health Organisation (2000) World Health Report: Health Systems: Improving Performance. Geneva: WHO. 27. Global Health Observatory Data Repository, retrieved in Fall 2015, http://apps.who.int/gho/data/node.main.NCD56?lang=en 28. OECD Health Statistics 2013 - Frequently Requested Data, retrived in Fall 2015, http://www.oecd.org/health/oecdhealthdata2013-frequentlyrequesteddata.htm
Year 2018, Volume: 21 Issue: 4, 641 - 653, 29.12.2018

Abstract

References

  • 1. Aaron H. J. (1991) Serious And Unstable Condition: Financing America's Health Care Washington: The Brookings Institution. 2. Banker R. D., Charnes A. and Cooper W. W. (1984) Some Models For Estimatingtechnical And Scale İnefficiencies İn Data Envelopment Analysis. Management Science 30(9): 1078–92. 3. Caves D. W., Christensen L. R. and Diewert W. E. (1982) The Economic Theory Of İndex Numbers And The Measurement Of İnput, Output And Productivity. Econometrica 50(6): 1393. 4. Charnes A., Cooper W. W. and Rhodes E. (1978) Measuring The Efficiency Of Decision Making Units. European Journal of Operational Research 2(6): 429–44. 5. Deb A. and Ray S., (2013) Economic Reforms and Total Factor Productivity Growth of Indian Manufacturing: An Inter-State Analysis. Working papers 2013-04, University of Connecticut, Department of Economics revised Apr 2013. 6. Färe R., Grosskopf S., Lindgren B. and Roos P. (1989) Productivity Developments İn Swedish Hospitals: A Malmquist Output İndex Approach. Discussion paper 89-3. Carbondale, IL: Southern Illinois University. 7. Färe R. and Grosskopf S. (1992) Malmquist Productivity Indexes and Fisher Ideal Indexes. The Economic Journal 102(410): 158-160. 8. Färe R., Grosskopf S., Norris M. and Zhang Z. (1994) Productivity Growth, Technical Progress, and Efficiency Change in Industrialized Countries. American Economic Review 84(1): 66-83. 9. Färe R., Grosskopf S., Lindgren B. and Poullier J. P. (1997) Productivity Growth İn Health Care Delivery. Medical Care 35(4): 354–366. 10. Farrell M. J. (1957) The Measurement Of Productive Efficiency. Journal of Royal Statistical Society (Series A) 120(3): 253–281. 11. Hollingsworth B. (2008). The Measurement Of Efficiency and Productivity of Health Care Delivery. Health Economics 17(10): 1107–1128. 12. Malmquist S. (1953) Index Numbers and Indifference Curves. Trab Estat 4(2): 209- 242. 13. Moscone F., Tosetti E., Costantini M. and Ali M. (2013) The Impact of Scientific Research on Health Care: Evidence From The OECD Countries. Economic Modelling 32: 325-332. 14. Muñiz M., Paradi J., Ruggiero J. and Yang Z. (2006) Evaluating Alternative DEA Models Used To Control For Non-Discretionary İnputs. Computers and Operations Research 33(5): 1173-1183 15. Newhouse J. P. (1993) An Iconoclastic View of Health Cost Containment. Health Affairs 12: 152-171. 16. Nishimuzu M. and Page J. M. (1982) Total Factor Productivity Growth, Technological Progress And Technical Efficiency Change: Dimensions Of Productivity Change İn Yugoslavia 1965–1978. Economics Journal 92(368): 920–936. 17. Nunamaker T. R. and Lewin A. Y. (1983) Measuring Routine Nursing Efficiency: A Comparison Of Cost Per Patient Day And Data Envelopment Analysis Models/Comment. Health Services Research 18(2): 183–208. 18. O’Neill L., Rauner M., Heidelberger K. and Kraus M. (2008) A Cross National Comparison And Taxonomy Of DEA Based Hospital Efficiency Studies. Socio- Economic Planning Sciences 42(3): 158–189. 19. Ozcan Y. A. (2008) Health Care Benchmarking And Performance Evaluation An Assessment Using Data Envelopment Analysis (DEA). Springer, Newton. 20. Ray S. (2004) Data Envelopment Analysis: Theory And Techniques For Economics And Operations Research. Cambridge: Cambridge University Press. 21. Retzlaff-Roberts D., Chang C. F. and Rubin R. M. (2004) Technical Efficiency in The Use of Health Care Resources: A Comparison of OECD Countries. Health Policy 69(1): 55–72. 22. Ruggiero J. (1998) Non-Discretionary Inputs in Data Envelopment Analysis. European Journal of Operational Research 111(3): 461-469. 23. Schwartz W. B. and Mendelson D. N. (1994) Eliminating Waste and Inefficiency Can Do Little to Contain Costs. Health Affairs 13: 224-238. 24. Sherman H. D. (1984) Hospital Efficiency Measurement And Evaluation: Empirical Test Of A New Technique. Medical Care 22(10): 922–938. 25. Wang J., Jamison D. T., Bos E., Preker A. and Peaboy J. (1999) Measuring Country Performance on Health: Selected Indicators For 115 Countries. Human Development Network, Health, Nutrition and Population Studies. Washington, DC: World Bank. 26. World Health Organisation (2000) World Health Report: Health Systems: Improving Performance. Geneva: WHO. 27. Global Health Observatory Data Repository, retrieved in Fall 2015, http://apps.who.int/gho/data/node.main.NCD56?lang=en 28. OECD Health Statistics 2013 - Frequently Requested Data, retrived in Fall 2015, http://www.oecd.org/health/oecdhealthdata2013-frequentlyrequesteddata.htm
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Details

Primary Language English
Journal Section Makaleler
Authors

Can Bekaroglu

Dennis Heffley This is me

Publication Date December 29, 2018
Published in Issue Year 2018 Volume: 21 Issue: 4

Cite

APA Bekaroglu, C., & Heffley, D. (2018). The Impact of Technical Change on Healthcare Production and Efficiency. Hacettepe Sağlık İdaresi Dergisi, 21(4), 641-653.
AMA Bekaroglu C, Heffley D. The Impact of Technical Change on Healthcare Production and Efficiency. HSİD. December 2018;21(4):641-653.
Chicago Bekaroglu, Can, and Dennis Heffley. “The Impact of Technical Change on Healthcare Production and Efficiency”. Hacettepe Sağlık İdaresi Dergisi 21, no. 4 (December 2018): 641-53.
EndNote Bekaroglu C, Heffley D (December 1, 2018) The Impact of Technical Change on Healthcare Production and Efficiency. Hacettepe Sağlık İdaresi Dergisi 21 4 641–653.
IEEE C. Bekaroglu and D. Heffley, “The Impact of Technical Change on Healthcare Production and Efficiency”, HSİD, vol. 21, no. 4, pp. 641–653, 2018.
ISNAD Bekaroglu, Can - Heffley, Dennis. “The Impact of Technical Change on Healthcare Production and Efficiency”. Hacettepe Sağlık İdaresi Dergisi 21/4 (December 2018), 641-653.
JAMA Bekaroglu C, Heffley D. The Impact of Technical Change on Healthcare Production and Efficiency. HSİD. 2018;21:641–653.
MLA Bekaroglu, Can and Dennis Heffley. “The Impact of Technical Change on Healthcare Production and Efficiency”. Hacettepe Sağlık İdaresi Dergisi, vol. 21, no. 4, 2018, pp. 641-53.
Vancouver Bekaroglu C, Heffley D. The Impact of Technical Change on Healthcare Production and Efficiency. HSİD. 2018;21(4):641-53.