The estimation of production function among public hospitals of Kermanshah University of Medical Sciences (2001-11)

Behzad Karami Matin, Moslem Soofi, Saman Falahi, Ali Kazemi Karyani, Satar Rezaei

Abstract


Background: One method to increase the performance and efficient use of hospital resources is using tools of economic analysis such as production function. The aim of this study was the estimation of production function among public hospitals of Kermanshah University of Medical Sciences during 2001- 11 using Cub Douglas production function.

Methods: The data about the dependent variable (number of hospitalized patients) and explanatory variables (numbers of active beds, nurses, doctors and other staffs) for six public hospitals during 2001- 11 were collected using information form.  The Data was analyzed employing Eviews software version 6.

Results: The production elasticity and the marginal production for all inputs were positive. The marginal production of active beds, doctors, nurses and other staffs were 76.7, 73.7, 19.3 and 6.7 respectively. The results also showed that the return to scale was increasing and the total input coefficient was equal to 1.45.

Conclusion: The maximum of elasticity and marginal production belonged to the active beds. This implies that the hospitals administrators in response to change demands can use active beds more than others inputs. Besides, the marginal production of other staffs was less than other studies, so incentive policies for effective and efficient use in hospital resources will be essential.


Keywords


hospitals, elasticity, production

References


Sabbaghe Kerman M, Shaghaghi Shahri V. [Estimating Production Function of Iran's Hospital (Persian)]. Biqaurterly Journal of Economy Essays. 2004;1(2);37-66.

Hadian M, Gohari MR, Yosefi M. [The estimation of production functions in Orumieh Medical Sciences University Hospitals (Persian)]. Journal of Health Administration. 2007:10(29);7-14.

Rezapoor A, Asefzadeh S. [Estimation of production functions in Hospitals of Qazvin Medical Sciences University 1998-2004 (Persian)]. Journal of Qazvin Univ of Med. 2006:3(10);86-90.

Vitaliano DF. On the estimation of hospital cost functions. J Health Econ. 1987;6(4):305-18.

Pauly MW. Medical staff characteristics and hospital costs. Journal of Human Resources. 1978;13:77-114.

Thornton J. Estimating a health production function for the US: some new evidence. Journal of Applied Economics. 2002;1(34):59-62.

Rosko MD, Broyles RW. The economics of health care: a reference handbook. Greenwood Press the University of California. 1988;300-1.

Gail A. Jensen and Michael A. Morrissey. The Review of Economics and Statistics.1986; 68(3):432-42. [Online available: http://www.jstor.org/stable/1926020].

Gujarati ND. basic Econometrics. 2nd ed. Michigan: McGraw-Hill. 1988;700-5.

Nazari M. [Microeconomics- Especially for management (Persian)]. 13th Version. Tehran; Negah Danesh Publisher. 2007;113-82.

Haqparast H. [Estimation of production functions in Hospitals of Iran Medical Sciences University (Persian)]. MS.c thesis in Health Services and Management. Iran: school of management and Medical information. Iran University of Medical Sciences. 2003;90-110.

Jensen GA, Morrison MA. Medical staff specialty mix and hospital production. Journal of Health Economics. 1986;5:250-70.




DOI: http://dx.doi.org/10.22110/jkums.v17i5.885

Refbacks

  • There are currently no refbacks.


Copyright (c)

Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.