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Comparisons of hospital output in Canada: national and international perspectives

Ruolz Ariste and Kam Yu ()

International Journal of Health Economics and Management, 2017, vol. 17, issue 4, No 3, 433-451

Abstract: Abstract Current cost-based approach in measuring health care output does not allow decomposition of health care expenditure into price and output components. In this paper we propose an episode-based direction measurement method which closely resembles the concept of output in the system of national accounts. Using data from the Canadian Institute for Health Information, we calculate a quality unadjusted output index of the Canadian hospital sector for the periods 1996–2005. The result shows that total output increases at an average annual growth rate of 1.49%. We expect that with the quality adjustment the actual rate is higher. This is in contrast with the long-held assumption that health care productivity growth is zero. Our results provide key information on the ongoing health care policy debate.

Keywords: Health care output; System of national accounts; Price index; Quantity index (search for similar items in EconPapers)
JEL-codes: C43 I12 (search for similar items in EconPapers)
Date: 2017
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DOI: 10.1007/s10754-017-9217-9

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International Journal of Health Economics and Management is currently edited by Leemore Dafny, Robert Town, Mark Pauly, David Dranove and Pedro Pita Barros

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Handle: RePEc:kap:ijhcfe:v:17:y:2017:i:4:d:10.1007_s10754-017-9217-9