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Measuring Output and Productivity in Private Hospitals

Measuring Output and Productivity in Private Hospitals

(p.145) 5 Measuring Output and Productivity in Private Hospitals
Measuring and Modeling Health Care Costs
Brian ChanskyCorby GarnerRonjoy Raichoudhary
University of Chicago Press

This paper presents initial research on measuring productivity growth in private hospitals from 1993 to 2010. Three measures of hospital productivity are developed based on different output concepts. Two measures are based on volume of services provided, while the third is based on industry revenues adjusted for price change. Output of private hospitals includes both outpatient and inpatient care. Inpatient stays are more difficult to measure. These stays can be counted as single units of output where output is defined as the entire course of treatment, or they can be disaggregated into more detailed services, where each medical procedure is counted separately. The two alternative output measures based on volume of output—a course of treatment-based measure and a procedures-based measure—correspond to these two concepts of inpatient care. Additional factors such as the outcome of the treatment and the quality of care are also taken into consideration. Trends in output and labor productivity derived from each of the three models of hospital output are examined. The models show differing rates of positive long term growth in hospital output and hospital productivity over the period of 1993 to 2010.

Keywords:   hospitals, productivity, efficiency, inpatient, outpatient, treatment, BLS, disease, labor, physical quantity

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