The Efficiency Frontier of For-Profit Hospitals
The Journal of Health Care Finance
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Title |
The Efficiency Frontier of For-Profit Hospitals
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Creator |
Harrison, Jeffrey; University of North Florida
Spaulding, Aaron; University of North Florida Mouhalis, Paul; University of North Florida |
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Description |
This study evaluates the efficiency of small and large for-profit hospitals using Data Envelopment Analysis (DEA). For this study, small for-profit hospitals are 35 beds or less which is consistent with the Federal designation of critical access hospitals (CAH). Large for-profit hospitals are 36 beds and greater. Results indicate overall efficiency in small for-profit hospitals was 60% in 2013. In contrast, the overall efficiency in large for-profit hospitals was 71% in 2013. The number of small for-profit hospitals operating on the efficiency frontier was 18 which represent 12%. Similarly, the number of large for-profit hospitals operating on the efficiency frontier was 49 which represent 8%. This clearly documents for-profit hospitals’ overall efficiency increases with greater size. Hospital executives, healthcare policymakers, taxpayers and other stakeholders benefit from studies that improve hospital efficiency. From a policy perspective, this study demonstrates a positive association between increased hospital size and increased efficiency within the for-profit hospital industry.
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Publisher |
Worldwebtalk.com, Inc.
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Contributor |
—
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Date |
2015-05-23
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Type |
info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion Peer-reviewed Article |
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Format |
application/pdf
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Identifier |
http://healthfinancejournal.com/index.php/johcf/article/view/28
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Source |
Journal of Health Care Finance; Vol 41, No 4: Spring 2015
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Language |
eng
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Relation |
http://healthfinancejournal.com/index.php/johcf/article/view/28/30
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Rights |
Copyright (c) 2016 Journal of Health Care Finance
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