The association between Hospital ownership and technical efficiency in a managed care environment

Keon Hyung Lee, Seung Bum Yang, Mankyu Choi

Research output: Contribution to journalArticle

32 Citations (Scopus)

Abstract

This study assessed the association between hospital ownership and technical efficiency in a managed care environment. Hospital technical efficiency scores were calculated via the data envelopment analysis (DEA) method, employing four input variables and three output variables from the American Hospital Association Hospital Survey Data for acute care general hospitals in Florida. By utilizing the hospital technical efficiency scores as a dependent variable, we determined that non-profit hospitals were more efficient than for-profit hospitals for all 4 years examined in this study. In particular, for-profit hospitals with between 100 and 249 beds and those with more than 400 beds had lower technical efficiency scores as compared to their nonprofit peers. Another finding was that teaching hospitals were more efficient than non-teaching hospitals in 2001-2003, but not in 2004. Those variables associated with managed care, namely "number of HMO contracts" and "contracted with HMO", however, were not shown to be statistically significant.

Original languageEnglish
Pages (from-to)307-315
Number of pages9
JournalJournal of Medical Systems
Volume33
Issue number4
DOIs
Publication statusPublished - 2009 Aug 1

Fingerprint

Ownership
Managed Care Programs
Health Maintenance Organizations
American Hospital Association
Profitability
Contracts
Hospital beds
Teaching Hospitals
General Hospitals
Data envelopment analysis
Teaching

Keywords

  • Data envelopment analysis (DEA)
  • Florida
  • Hospital ownership
  • Managed care
  • Teaching status
  • Tobit analysis

ASJC Scopus subject areas

  • Medicine (miscellaneous)
  • Health Informatics
  • Health Information Management
  • Information Systems

Cite this

The association between Hospital ownership and technical efficiency in a managed care environment. / Lee, Keon Hyung; Yang, Seung Bum; Choi, Mankyu.

In: Journal of Medical Systems, Vol. 33, No. 4, 01.08.2009, p. 307-315.

Research output: Contribution to journalArticle

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