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The Technical Efficiency of Hospitals under a Single Payer System: The Case of Ontario Community Hospitals

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Abstract

Using DEA, we investigated the impact of ownership, size, and location on the relative technical efficiency of community hospitals in Ontario, which has a single payer system. Consistent with Hansmann's theory of non-profit organizations and contrary to US-based research, we find no significant differences in efficiency across ownership types (government, religious or secular non-profit). Nor do we find significant differences in efficiency by size or location. Our findings suggest that model formulation and differences in payer mix across types of hospitals in the US have a strong influence on the measurement of the hospital ownership–efficiency relationship.

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Authors and Affiliations

  1. Tippie College of Business, University of Iowa, Iowa City, IA, 52242-1000, USA

    Thomas S. Gruca

  2. Cap Gemini Ernst & Young, 200 Clarendon Street, Boston, MA, 02116, USA

    Deepika Nath

Authors
  1. Thomas S. Gruca
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  2. Deepika Nath
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Gruca, T.S., Nath, D. The Technical Efficiency of Hospitals under a Single Payer System: The Case of Ontario Community Hospitals. Health Care Management Science 4, 91–101 (2001). https://doi.org/10.1023/A:1011401510010

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