Administration above Administrators: The Changing Technology of Health Care Management

Abe Dunn, Joshua Gottlieb and Adam Shapiro

AEA Papers and Proceedings, 2020, vol. 110, 274-78

Abstract: This paper measures the costs and types of administrative inputs in health care. We use data on labor and nonlabor inputs by industry and categorize them as administrative or not. We find that nonlabor inputs are a critical part of administrative spending, over and above labor inputs. Trends in nonlabor administrative input spending have differed dramatically from that of labor input spending for hospitals over the last 20 years. Hospitals have substituted away from office workers and toward externally purchased inputs. The share of managers and technical workers in administration has grown. The technology of health care administration is changing.

JEL-codes: I11 I18 (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (1)

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DOI: 10.1257/pandp.20201031

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