Heterogeneity in Hospitals' Responses to a Financial Reform: A Random Coefficient Analysis of The Impact of Activity-Based Financing on Efficiency

Erik Biorn, Terje P. Hagen, Tor Iversen and Jon Magnussen

MPRA Paper from University Library of Munich, Germany

Abstract: The paper examines the heterogeneity with respect to the impact of a financial reform - Activity Based Financing (ABF) - on hospital efficiency in Norway. Measures of technical efficiency and of cost-efficiency are considered. The data set is from a contiguous ten-year panel of 47 hospitals covering both pre-ABF years and years after its imposition. Substantial heterogeneity in the responses, as measured by both estimated and predicted coefficients, is found. Rank correlations between the estimated/predicted coefficients of the ABF dummy and the pre-ABF/post-ABF efficiencies are examined. Overall, improvement seems to be more pronounced in technical efficiency than in cost-efficiency.

Keywords: Health Econometrics; Panel Data; Hospital Efficiency; Activity-Based Financing, Random Coefficients; Heterogeneity; Rank Correlation (search for similar items in EconPapers)
JEL-codes: C23 C33 H51 I12 I18 (search for similar items in EconPapers)
Date: 2006
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Citations: View citations in EconPapers (3)

Published in HERO Working Paper 2006:9 (2006): pp. 1-34

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Related works:
Working Paper: Heterogenety in hospitals responses to a financial reform: A random coefficient analysis of the impact of activity-based financing on efficiency (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:8169

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