Efficiency Analysis of Rural Hospitals: Parametric and Semi-parametric Approaches

Autor: Nedelea, I. Cristian, Fannin, James Matthew
Jazyk: angličtina
Rok vydání: 2012
Předmět:
DOI: 10.22004/ag.econ.119725
Popis: This paper examined cost efficiency differences between rural hospitals participating in the Critical Access Hospital (CAH) Program and a group of non-converting, prospectively paid rural hospitals using both a two-stage semi-parametric approach as well as stochastic frontier analysis (SFA). CAHs receive Medicare cost-based reimbursement, in contrast with the rest of the hospitals reimbursed under Medicare prospective payment system (PPS). However, cost-based reimbursement has been associated with inefficiency in hospital operations and, consequently, concerns have been raised about the efficiency of CAHs. Results showed a positive and significant effect of CAH status on cost inefficiency under both model specifications suggesting that CAHs were less cost efficient than non-converting rural hospitals.
Databáze: OpenAIRE