Efficiency and productivity assessment of public hospitals in Greece during the crisis period 2009–2012

Background

This study is an initial effort to examine the dynamics of efficiency and productivity in Greek public hospitals during the first phase of the crisis 2009–2012. Data were collected by the Ministry of Health after several quality controls ensuring comparability and validity of hospital inputs and outputs. Productivity is estimated using the Malmquist Indicator, decomposing the estimated values into efficiency and technological change.

Methods

Hospital efficiency and productivity growth are calculated by bootstrapping the non-parametric Malmquist analysis. The advantage of this method is the estimation efficiency and productivity through the corresponding confidence intervals. Additionally, a Random-effects Tobit model is explored to investigate the impact of contextual factors on the magnitude of efficiency.

Results

Findings reveal substantial variations in hospital productivity over the period from 2009 to 2012. The economic crisis of 2009 had a negative impact in productivity. The average Malmquist Productivity Indicator (MPI) score is 0.72 with unity signifying stable production. Approximately 91% of the hospitals score lower than unity. Substantial increase is observed between 2010 and 2011, as indicated by the average MPI score which fluctuates to 1.52. Moreover, technology change scored more than unity in more than 75% of hospitals. The last period (2011–2012) has shown stabilization in the expansionary process of productivity. The main factors contributing to overall productivity gains are increases in occupancy rates, type and size of the hospital.

Conclusions

This paper attempts to offer insights in efficiency and productivity growth for public hospitals in Greece. The results suggest that the average hospital experienced substantial productivity growth between 2009 and 2012 as indicated by variations in MPI. Almost all of the productivity increase was due to technology change which could be explained by the concurrent managerial and financing healthcare reforms. Hospitals operating under decreasing returns to scale could achieve higher efficiency rates by reducing their capacity. However, certain social objectives should also be considered. Emphasis perhaps should be placed in utilizing and advancing managerial and organizational reforms, so that the benefits of technological improvements will have a continuing positive impact in the future.

     

Accounting for quality in the measurement of hospital performance: evidence from Costa Rica

This paper provides insights into how Costa Rican public hospitals responded to the pressure for increased efficiency and quality introduced by the reforms carried out over the period 1997-2001. To that purpose we compute a generalized output distance function by means of non-parametric mathematical programming to construct a productivity index, which accounts for productivity changes while controlling for quality of care. Our results show an improvement in hospital performance mainly driven by quality increases. The adoption of management contracts seems to have contributed to such enhancement, more notably for small hospitals. Further, productivity growth is primarily due to technical and scale efficiency change rather than technological change. A number of policy implications are drawn from these results.     

Productivity growth,case mix and optimal size of hospitals. A 16-year study of the Norwegian hospital sector

Background and objectives

This paper analyses productivity growth in the Norwegian hospital sector over a period of 16 years, 1999–2014. This period was characterized by a large ownership reform with subsequent hospital reorganizations and mergers. We describe how technological change, technical productivity, scale efficiency and the estimated optimal size of hospitals have evolved during this period.

Productivity and efficiency changes in primary care: a Malmquist index approach

The reforms of the National Health System in the UK introduced in 1990 led to substantial changes in the organisation of primary health care. In this paper we analyse the efficiency of primary care provision in the English Family Health Service Authorities (FHSAs) over the period 1990/91–1994/95. We use Data Envelopment Analysis to measure Malmquist indices of productivity changes, which are then decomposed into indices of pure technical efficiency change, scale efficiency change and technological change. The analysis indicates a small improvement in the productivity over the period considered. The increase is attributed to pure technical efficiency improvement and positive change in scale efficiency, while the technology does not show significant change. The analysis suggests that there is very limited scope for productivity gains in this sector.     

基于Malmquist指数的北京三级医院全要素生产率分析

目的测量综合三级医院全要素生产率的变化状况,为提高医院运营效率提供决策依据和参考。方法收集北京市12所三甲医院2007～2009年3年面板数据（4项投入指标,5项产出指标）,应用数据包络分析（DEA）的Malmquist模型进行分析。结果3年间样本医院全要素生产率的年平均增长率为33．7％,进一步分解发现：技术进步年均增长率为达到33．4％,技术效率、纯技术效率增长率分别为0．2％,而规模效率没有变化。结论北京地区三级综合医院全要素生产率增长较为显著,其增长贡献主要来源于技术进步,并且不存在技术衰退;为最大限度提高医院生产率,应加强医院内部管理,激发技术效率和规模效率;在医院生产率测量和效率评价研究中,宜吸收患者和公共利益维度的评价指标。     

Exploring the influence of context and policy on health district productivity in Cambodia

Background

Cambodia has been reconstructing its economy and health sector since the end of conflict in the 1990s. There have been gains in life expectancy and increased health expenditure, but Cambodia still lags behind neighbours One factor which may contribute is the efficiency of public health services. This article aims to understand variations in efficiency and the extent to which changes in efficiency are associated with key health policies that have been introduced to strengthen access to health services over the past decade.

Methods

The analysis makes use of data envelopment analysis (DEA) to measure relative efficiency and changes in productivity and regression analysis to assess the association with the implementation of health policies. Data on 28 operational districts were obtained for 2008–11, focussing on the five provinces selected to represent a range of conditions in Cambodia. DEA was used to calculate efficiency scores assuming constant and variable returns to scale and Malmquist indices to measure productivity changes over time. This analysis was combined with qualitative findings from 17 key informant interviews and 19 in-depth interviews with managers and staff in the same provinces.

Results

The DEA results suggest great variation in the efficiency scores and trends of scores of public health services in the five provinces. Starting points were significantly different, but three of the five provinces have improved efficiency considerably over the period. Higher efficiency is associated with more densely populated areas. Areas with health equity funds in Special Operating Agency (SOA) and non-SOA areas are associated with higher efficiency. The same effect is not found in areas only operating voucher schemes. We find that the efficiency score increased by 0.12 the year any of the policies was introduced.

Conclusions

This is the first study published on health district productivity in Cambodia. It is one of the few studies in the region to consider the impact of health policy changes on health sector efficiency. The results suggest that the recent health financing reforms have been effective, singly and in combination. This analysis could be extended nationwide and used for targeting of new initiatives. The finding of an association between recent policy interventions and improved productivity of public health services is relevant for other countries planning similar health sector reforms.

     

Hierarchical Generalised Linear Models with Time-Dependent Clustering: Assessing the Effect of Health Sector Reform on Patient Outcomes in New Zealand

New Zealand has one of the most reformed health systems in the world. This paper is primarily concerned with modelling the impact on hospital outcomes of the reforms of the early 1990s, when as part of a major, health sector wide reform process, the administration of public hospitals passed from elected Area Health Boards (AHBs) to Crown Health Enterprises (CHEs) operating under a competitive model of health care provision dominated by the funder/purchaser/provider split. The impact of reform processes on public hospitals is of particular interest since they consume 40%–50% of public expenditure on health, and have been repeatedly restructured in an attempt to contain the ever-expanding cost of health care. There is concern among both health professionals and the general public that these restructurings are reducing the quality of hospital services, and therefore negatively effecting patient outcomes. Using data from a study of 34 New Zealand public hospitals, we discuss the application of Bayesian hierarchical generalised linear models to the analysis of trends in patient outcomes over the period 1988–2001. The time-varying nature of the grouping of hospitals within larger health authorities complicates the application of HGLMs because the cluster structure of the data changes over the study period. An approach to dealing with such time-dependent clustering by introducing period-specific authority level effects is developed. The analysis does not support the proposition that higher level authorities had an effect on outcome trends, or that the administrative changeover from AHBs to CHEs impacted on 60-day post-admission mortality.     

Efficiency. Measured response

An analysis of the activity of 75 acute hospitals over the period 1991-96 using data envelopment analysis shows that, while overall productivity increased, the efficiency of individual hospitals did not. A small decrease in the efficiency of individual hospitals was found in the last four years studied. An analysis of quality of care over the same period suggests that gains in volume of services may have been at the expense of quality of care. The results suggest that incentives for increasing hospital efficiency have a one-off impact rather than a sustained effect.     

Does restructuring hospitals result in greater efficiency?--An empirical test using diachronic data.

Hospitals are being restructured more frequently. Increased cost efficiency is the usual justification given for such changes. All 20 major teaching hospitals in Australia's two most populous states were investigated by classifying each over a 5-6 year period in terms of their cost efficiency (average cost per case weighted by Australian diagnosis-related group [AN-DRG] data and adjusted for inflation) and structure, categorized as traditional-professional (TP), clinical-divisional (CD), or clinical-institute (CI). In all, 12 hospitals changed structure during the study period. There was slight evidence that CD structures were more efficient than TP structures but this was not supported by other evidence. There were no significant differences in efficiency in the first or second years following changes from either TP to CD or TP to CI structures. All four hospitals changing from CD to CI structure became significantly less efficient. This may be due to frequency rather than type of change as they were the only hospitals that implemented two structural changes. Hospitals that changed or did not change structure were similar in efficiency at the beginning and at the end of the study period, in overall efficiency during the period, and in trends toward efficiency over time. The findings challenge those who advocate restructuring hospitals on the grounds of improving cost efficiency.     

福建省县级综合性公立医院运行效率变化分析

目的:研究福建省40家县级综合性公立医院的综合效率、技术效率和规模效率变化情况,以及全要素生产率随着时间变化的情况,为提高县级综合性公立医院运营效率提供决策依据和参考。方法:收集2009—2014年福建省40家县级综合性公立医院运营相关数据,运用数据包络分析法(DEA)的CCR、BCC和Malmquist模型进行分析。结果:40家县级综合性公立医院中绝大多数处于规模递减状态,2009—2014年的全要素生产率为1.019,21家(52.5%)医院生产率有所提高,其中3家医院生产率提高是由于技术进步,3家是由于效率提高,15家是由于技术进步和效率提高共同作用。结论:福建省县级综合性公立医院效率总体不足,且不同地区医院运行效率有差异,山区医院效率有所提高,沿海地区医院效率出现下降。因此,政府在加大对县级综合性公立医院投入时,应采取差别化政策,注意合理控制医院规模,同时应加强内涵建设,重视医疗技术的提升。     

A hedonic prices approach to hospitalization costs. The case of Israel.

The paper suggests a hedonic prices approach to estimate the cost of hospital services. It applies this approach to Israeli data as a first approximation of hospitalization costs in that country. In the absence of accounting data, this approach enables us to estimate the relative cost of basic hospital services, how hospital characteristics affect cost and how cost changes with time. Moreover, it provides for a standardized measure to view the relative efficiency of a cross section of hospitals. Several findings based on Israeli data demonstrate the potential of the approach and may be of general interest. First, controlling for department mix, bigger hospitals, which are usually also teaching hospitals and may have a different case-mix, incur higher cost per admission than smaller hospitals. Second, by institution, General Sick Fund hospitals are more expensive, but also experience, in terms of budget allocations, less discrimination than Government hospitals. Hence, provision of equitable service may be less efficient than in services where there is budgetary discrimination to induce specialization, etc. Third, hospitals have been subject to inflationary pressures over and above the general inflation level in Israel, as may be the case in most other western countries. Fourth, a comparison of cost per admission across hospitals and over time shows that cost has been consistently increasing in particular hospitals and falling in others, beyond the average increases warranted by growth in size, changes in composition, and hospitalization-specific inflation. More research is needed in order to explain these unexplained but consistent trends.     

Rural vs urban hospital performance in a ‘competitive’ public health service

In some western countries, market-driven reforms to improve efficiency and quality have harmed the performance of some hospitals, occasionally leading to their closure, mostly in rural areas. This paper seeks to explore whether these reforms affect urban and rural hospitals differently in a European health service. Rural and urban hospital performance is compared taking into account their efficiency and perceived quality. The study is focused on the Andalusian Health Service (SAS) in Spain, which has implemented a freedom of hospital choice policy and a reimbursement system based on hospital performance. Data Envelopment Analysis, the Mann–Whitney U test and Multidimensional Scaling techniques are conducted for two years, 2003 and 2006. The results show that rural and urban hospitals perform similarly in the efficiency dimension, whereas rural hospitals perform significantly better than urban hospitals in the patient satisfaction dimension. When the two dimensions are considered jointly, some rural hospitals are found to be the best performers. As such, market-driven reforms do not necessary result in a difference in the performance of rural and urban hospitals.     

The impact of deficit reduction on the nursing labour market in Canada

Introduction

Beginning in 1992, governments throughout Canada began reducing expenditures in an effort to eliminate fiscal deficits and reduce their alarmingly high debt burden. As part of this deficit-fighting era, governments reduced hospital expenditure levels quite dramatically. Some of the current problems in the Canadian healthcare system–the recent unrest in the nursing labour market in particular–are often attributed to this hospital downsizing era.

Methods

This article examines trends in the labour market for registered nurses in Canada during the hospital downsizing period. Of particular interest is the effect of hospital spending reforms on nurse employment levels in hospitals and on the age structure of the nursing workforce. After identifying the trends, the main factors driving the trends are discussed.

Results

Results indicate that a decrease in the demand for nursing labour resulted in large staff layoffs during the restructuring period, particularly among the youngest age groups.

Discussion/conclusion

The evidence does not support the claim that deteriorating wages and working conditions in hospitals led nurses to quit their jobs during the hospital downsizing period.     

Measuring efficiency of governmental hospitals in Palestine using stochastic frontier analysis

Background

The Palestinian government has been under increasing pressure to improve provision of health services while seeking to effectively employ its scare resources. Governmental hospitals remain the leading costly units as they consume about 60 % of governmental health budget. A clearer understanding of the technical efficiency of hospitals is crucial to shape future health policy reforms. In this paper, we used stochastic frontier analysis to measure technical efficiency of governmental hospitals, the first of its kind nationally.

Methods

We estimated maximum likelihood random-effects and time-invariant efficiency model developed by Battese and Coelli, 1988. Number of beds, number of doctors, number of nurses, and number of non-medical staff, were used as the input variables, and sum of number of treated inpatients and outpatients was used as output variable. Our dataset includes balanced panel data of 22 governmental hospitals over a period of 6 years. Cobb–Douglas function, translog function, and multi-output distance function were estimated using STATA 12.

Results

The average technical efficiency of hospitals was approximately 55 %, and ranged from 28 to 91 %. Doctors and nurses appear to be the most important factors in hospital production, as 1 % increase in number of doctors, results in an increase in the production of the hospital of 0.33 and 0.51 %, respectively. If hospitals increase all inputs by 1 %, their production would increase by 0.74 %. Hospitals production process has a decrease return to scale.

Conclusion

Despite continued investment in governmental hospitals, they remained relatively inefficient. Using the existing amount of resources, the amount of delivered outputs can be improved 45 % which provides insight into mismanagement of available resources. To address hospital inefficiency, it is important to increase the numbers of doctors and nurses. The number of non-medical staff should be reduced. Offering the option of early retirement, limit hiring, and transfer to primary health care centers are possible options. It is crucial to maintain a rich clinical skill-mix when implementing such measures. Adopting interventions to improve the quality of management in hospitals will improve efficiency. International benchmarking provides more insights on sources of hospital inefficiency.

     

Eficiencia técnica de los hospitales públicos y de las empresas públicas hospitalarias de Andalucía

ObjectiveTo assess the technical efficiency of traditional public hospitals without their own legal identity and subject to administrative law, and that of public enterprise hospitals, with their own legal identities and partly governed by private law, all of them belonging to the taxypayer-funded health system of Andalusia during the period 2005 -2008.MethodsThe study included the 32 publicly-owned hospitals in Andalusia during the period 2005-2008. The method consisted of two stages. In the first stage, the indices of technical efficiency of the hospitals were calculated using Data Envelopment Analysis, and the change in total factor productivity was estimated using the Malmquist index. The results were compared according to perceived quality, and a sensitivity analysis was conducted through an auxiliary model and bootstrapping. In the second stage, a bivariate analysis was performed between hospital efficiency and organization type.ResultsPublic enterprises were more efficient than traditional hospitals (on average by over 10%) in each of the study years. Nevertheless, a process of convergence was observed between the two types of organizations because, while the efficiency of traditional hospitals increased slightly (by 0.50%) over the study period, the performance of public enterprises declined by over 2%.DiscussionThe possible reasons for the greater efficiency of public enterprises include their greater budgetary and employment flexibility. However, the convergence process observed points to a process of mutual learning that is not necessarily efficient.     

Is the Colombian health system reform improving the performance of public hospitals in Bogotá?

Many countries are experimenting with public hospital reform - both increasing the managerial autonomy with which hospitals conduct their affairs, and separating 'purchaser' and 'provider' sides of the health system, thus increasing the degree of market pressure brought to bear on hospitals. Evidence suggesting that such reform will improve hospital performance is weak. From a theoretical perspective, it is not clear why public hospitals should be expected to behave like firms and seek to maximize profits as this model requires. Empirically, there is very slight evidence that such reforms may improve efficiency, and reason to be concerned about their equity implications. In Colombia, an ambitious reform programme includes among its measures the attempt to universalize a segmented health system, the creation of a purchaser-provider split and the transformation of public hospitals into 'autonomous state entities'. By design, the Colombian reform programme avoids the forces that produce equity losses in other developing countries. This paper reports the results of a study that has tried to track hospital performance in other dimensions in the post-reform period in Bogotá. Trends in hospital inputs, production and productivity, quality and patient satisfaction are presented, and qualitative data based on interviews with hospital workers are analyzed. The evidence we have been able to collect is capable of providing only a partial response to the study question. There is some evidence of increased activity and productivity and sustained quality despite declining staffing levels. Qualitative data suggest that hospital workers have noticed considerable changes, which include greater responsiveness to patients but also a heavier administrative burden. It is difficult to attribute specific causality to all of the changes measured and this reflects the inherent difficulty of judging the effects of large-scale reform programmes as well as weaknesses and gaps in the data available.     

An analysis of hospital efficiency and productivity growth using the Luenberger indicator

We analyze hospital efficiency and productivity growth using an innovative approach which employs the directional distance function and the Luenberger productivity indicator. The primary advantage of our approach is that both input contractions and output expansions are considered. Our model generates a productivity indicator that is decomposed into the usual constituents of productivity growth: technological change and efficiency change. For the sake of comparison, we also use the Malmquist productivity index. The empirical results based on a sample of Portuguese hospitals from 1997 to 2004 show that, on average, those hospitals experienced very weak productivity growth over that period. In addition, the incidence of technological change was remarkably low.     

The impact of the financial crisis and austerity policies on the service quality of public hospitals in Greece

The influence of the financial crisis on the efficiency of Greek public hospitals has been widely debated. Despite this increasing interest in such research, the question of to what extent the recent reforms in the Greek National health care system were effective in establishing a health care structure and process that provide better results for patients has yet to be fully investigated. As a step in this direction, the paper focuses on patient's experience with public hospital care quality before and during the economic crisis. A questionnaire survey was carried out among 1872 patients discharged from 110 out of the total of 124 Greek public hospitals. Patients' perceptions were analysed using a structural equation modelling approach. The findings reveal that public hospital service quality is at a medium level (66.2 on a scale from 1 to 100) over 2007–2014, presenting a decreasing trend during the recession. Policies to address the crisis may have contributed to a reduction in hospital expenditures, but at the same time patients were increasingly dissatisfied with the technical care. Consequently, there is a need for reforms aimed at the achievement of productivity gains, responsibility, and transparency in the management of productive resources, by enabling health organisations to reduce their costs without a deterioration in the quality of care.     

Analyzing the ambiguous relationship between efficiency,quality and patient satisfaction in healthcare services: The case of public hospitals in Turkey

Objective

This paper empirically analyzes the effects of efficiency and structural quality on patient satisfaction in Turkish public hospitals. It also investigates the controversial relationship between hospital efficiency and structural quality for small, medium and large size hospitals in a comparative perspective.

Methods

Data envelopment analysis (DEA) is used to analyze the efficiencies of hospitals. Data concerning 523 public hospitals is obtained from Turkish Ministry of Health. Due to the missing data of some hospitals, the sample of this study is composed of the remaining 348 observations. Multiple regression analysis is used to evaluate the relationship between patient satisfaction as a dependent variable and structural quality, hospital efficiency and institutional factors as independent variables. Furthermore, stepwise process multiple regression analysis is used to analyze the moderator effects of hospital efficiency on the form of the relationship between quality and satisfaction.

Findings

The findings indicate that hospital efficiency changes the form of the relationship between structural quality and patient satisfaction as a moderator variable. The trade-off between quality and efficiency is found to vary depending on the hospital size. Negative correlation is found between quality and efficiency for small-size hospitals. However, positive correlation between efficiency and quality is found significant as indicated by Total Quality Management (TQM) approach for large-size hospitals. This study also provides the empirical evidence on the negative relationship between patient satisfaction and hospital size.

Conclusions

The effect of hospital efficiency on patient satisfaction might be improved for inefficient small and medium size hospitals by taking successful large hospitals as role models.     

Economic incentives and diagnostic coding in a public health care system

We analysed the association between economic incentives and diagnostic coding practice in the Norwegian public health care system. Data included 3,180,578 hospital discharges in Norway covering the period 1999–2008. For reimbursement purposes, all discharges are grouped in diagnosis-related groups (DRGs). We examined pairs of DRGs where the addition of one or more specific diagnoses places the patient in a complicated rather than an uncomplicated group, yielding higher reimbursement. The economic incentive was measured as the potential gain in income by coding a patient as complicated, and we analysed the association between this gain and the share of complicated discharges within the DRG pairs. Using multilevel linear regression modelling, we estimated both differences between hospitals for each DRG pair and changes within hospitals for each DRG pair over time. Over the whole period, a one-DRG-point difference in price was associated with an increased share of complicated discharges of 14.2 (95 % confidence interval [CI] 11.2–17.2) percentage points. However, a one-DRG-point change in prices between years was only associated with a 0.4 (95 % CI \(-1.1\) to 1.8) percentage point change of discharges into the most complicated diagnostic category. Although there was a strong increase in complicated discharges over time, this was not as closely related to price changes as expected.