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The Cost Efficiency of Turkish Hospitals: A Stochastic Frontier Analysis

Emre Atilgan and Zafer Çalişkan
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Emre Atilgan: Trakya Üniveristesi
Zafer Çalişkan: Hacettepe Üniversitesi

Iktisat Isletme ve Finans, 2015, vol. 30, issue 355, 09-30

Abstract: The purpose of this study is to estimate cost efficiencies of public hospitals in Turkey using data for the period 2007 to 2009. Hospital cost efficiencies are estimated using the Stochastic Frontier Analysis method with a translog cost function. The results indicate that performance-based supplementary payment system does not increase the cost efficiency of hospitals. According to the inefficiency effects model, occupancy rates are positively correlated with the efficiency scores. On the other hand, hospitals efficiency is inversely associated with the population and development levels of regions. In addition, there is a positive correlation between the hospital capacity and efficiency.

Keywords: Hospital Cost; Efficiency; Stochastic Frontier Analysis (search for similar items in EconPapers)
JEL-codes: I11 (search for similar items in EconPapers)
Date: 2015
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