+ Site Statistics
+ Search Articles
+ PDF Full Text Service
How our service works
Request PDF Full Text
+ Follow Us
Follow on Facebook
Follow on Twitter
Follow on LinkedIn
+ Subscribe to Site Feeds
Most Shared
PDF Full Text
+ Translate
+ Recently Requested

Excess capacity and expense preference behaviour in National Health Systems: an application to the Spanish public hospitals

Excess capacity and expense preference behaviour in National Health Systems: an application to the Spanish public hospitals

Health Economics 13(2): 157-169

The aim of this paper is to study excess capacity in National Health System (NHS) hospitals, which have the characteristics of a bureaucracy, within a theoretically consistent framework. In this sense, we develop and estimate an empirical model which has not previously been applied to this problem. This model, based on an input distance function, is attractive for at least two reasons. Unlike the production function, the input distance function is valid for multiproduct technologies such as that of hospitals, and in contrast to the cost function it permits testing of the cost minimisation hypothesis and therefore allows expense preference behaviour in the context of NHS hospitals. We present an application to the Spanish public hospital sector and observe persistent allocative inefficiency in variable inputs and overcapitalisation in these hospitals. Hence, our results suggest that this sector is not in long-run equilibrium and that adjustments in variable inputs and capital equipment investments are necessary to control hospital cost.

Please choose payment method:

(PDF emailed within 0-6 h: $19.90)

Accession: 049011730

Download citation: RISBibTeXText

PMID: 14737753

DOI: 10.1002/hec.803

Related references

The effects of stochastic demand and expense preference behaviour on public hospital costs and excess capacity. Health Economics 18(2): 227-235, 2008

Evolution of public hospitals expenditure by healthcare area in the Spanish National Health System: the determinants to pay attention to. Bmc Health Services Research 18(1): 696, 2018

EHR systems in the Spanish Public Health National System: the lack of interoperability between primary and specialty care. Journal of Medical Systems 37(1): 9914, 2015

Advancing the application of systems thinking in health: provider payment and service supply behaviour and incentives in the Ghana National Health Insurance Scheme--a systems approach. Health Research Policy and Systems 12: 35, 2015

Financial expense incurred by medical leaves of health professionals in Rondonia public hospitals, Brazil. Revista Latino-Americana de Enfermagem 18(3): 406-412, 2010

Does the National Health and Hospitals Reform Commission have a real answer for public hospitals?. Medical Journal of Australia 191(8): 446-447, 2009

Impact and preventability of adverse events in Spanish public hospitals: results of the Spanish National Study of Adverse Events (ENEAS). International Journal for Quality in Health Care 21(6): 408-414, 2010

Institutional capacity for health systems research in East and Central African schools of public health: experiences with a capacity assessment tool. Health Research Policy and Systems 12: 21, 2014

Hospitals set 1992 public policy agenda. California Association of Hospitals and Health Systems. California Hospitals 6(1): 26-27, 1991

Community-based public health: partnering with public hospitals and health systems. Community-Based Public Health Policy and Practice 2003(9): 1-6, 2003

Institutional capacity for health systems research in East and Central Africa schools of public health: enhancing capacity to design and implement teaching programs. Health Research Policy and Systems 12: 22, 2014

A systems science perspective on the capacity for change in public hospitals. Israel Journal of Health Policy Research 6: 16, 2018

Insights in public health: systems thinking: basic constructs, application challenges, misuse in health, and how public health leaders can pave the way forward. Hawai'i Journal of Medicine and Public Health 72(12): 440-444, 2015

Analysis of the technical efficiency of hospitals in the Spanish National Health Service. Gaceta Sanitaria 31(2): 108-115, 2017

A multistate examination of partnership activity among local public health systems using the National Public Health Performance Standards. Journal of Public Health Management and Practice 18(5): E14-E23, 2012