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Rural hospital performance and its correlates

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Abstract

The cost, technical, allocative and scale efficiencies of a sample of rural U.S. hospitals are calculated via linear programming models. Tobit analysis is used to assess possible correlates of each of the efficiency measures. A large amount of dispersion in operating efficiency is found within our data set; the majority of the dispersion is due to technical inefficiency. In general, for-profit hospitals are found to outperform not-for-profit and public hospitals. Demand characteristics, quality of care, and the mix of services offered are also found to influence performance.

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Authors and Affiliations

  1. Department of Economics, University of Arkansas, 72701-1201, Fayetteville, AR

    Gary D. Ferrier

  2. Department of Health Administration and Policy, University of Oklahoma, 73190, Oklahoma City, OK

    Vivian Valdmanis

Authors
  1. Gary D. Ferrier
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  2. Vivian Valdmanis
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Ferrier, G.D., Valdmanis, V. Rural hospital performance and its correlates. J Prod Anal 7, 63–80 (1996). https://doi.org/10.1007/BF00158477

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