Activity based funding reform and the performance of public hospitals: The Case of Queensland, Australia

Bao Hoang Nguyen (), Shawna Grosskopf, Jongsay Yong and Valentin Zelenyuk
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Bao Hoang Nguyen: School of Economics and Centre for Efficiency and Productivity Analysis (CEPA) at The University of Queensland, Australia
Jongsay Yong: Melbourne Institute of Applied Economic and Social Research, The University of Melbourne, Parkville, Australia

No WP082022, CEPA Working Papers Series from University of Queensland, School of Economics

Abstract: This study investigates the impact of activity-based funding (ABF) on the performance of hospitals by exploiting a natural experiment that happened in the state of Queensland, Australia. To examine the outcome of the reform, we use both a simple measure of performance (the weighted average length of stay) and more sophisticated ones (the technical efficiency estimated from data envelopment analysis (DEA) models). We try to identify the causal effect of ABF on the technical efficiency of hospitals by incorporating difference-in-differences approach in the popular two-stage DEA framework. We find empirical evidence that ABF improves the technical efficiency of hospitals.

Keywords: Hospital effciency; Activity based funding; Healthcare reform; DEA; Differencein- Differences; Truncated regression. (search for similar items in EconPapers)
JEL-codes: C24 C61 I11 I18 (search for similar items in EconPapers)
Date: 2022-11
New Economics Papers: this item is included in nep-eff and nep-hea
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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https://economics.uq.edu.au/files/38788/WP082022.pdf (application/pdf)

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Journal Article: Activity‐based funding reform and the performance of public hospitals: The case of Queensland, Australia (2024)
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Persistent link: https://EconPapers.repec.org/RePEc:qld:uqcepa:180

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