Measuring efficiency from casemix funding in Victoria using the stochastic frontier

The Australian state of Victoria experienced a fundamental change in public hospital funding in 1993 with the introduction of casemix funding using diagnosis related groups. One of the primary drivers of this altered funding regime was to introduce a mechanism by which public hospitals could be com...

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Main Author: Mangano, Maria
Format: Working Paper
Published: Centre for Research in Applied Economics, Curtin Business School, Curtin University of Technology 2007
Subjects:
Online Access:http://hdl.handle.net/20.500.11937/20476
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author Mangano, Maria
author_facet Mangano, Maria
author_sort Mangano, Maria
building Curtin Institutional Repository
collection Online Access
description The Australian state of Victoria experienced a fundamental change in public hospital funding in 1993 with the introduction of casemix funding using diagnosis related groups. One of the primary drivers of this altered funding regime was to introduce a mechanism by which public hospitals could be compared for costs. Cost comparisons would then create an incentive for efficiency improvements because efficient hospitals would attract increased funding. This paper applies stochastic frontier estimation of a production function to panel data for the period 92/93 to 95/96 in order to establish whether, in fact, efficiency improvements were realised over this period. The results show that there was no significant change to individual hospital efficiency levels.
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institution Curtin University Malaysia
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publishDate 2007
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spelling curtin-20.500.11937-204762017-01-30T12:19:29Z Measuring efficiency from casemix funding in Victoria using the stochastic frontier Mangano, Maria Victoria efficiency measurement casemix funding stochastic frontier The Australian state of Victoria experienced a fundamental change in public hospital funding in 1993 with the introduction of casemix funding using diagnosis related groups. One of the primary drivers of this altered funding regime was to introduce a mechanism by which public hospitals could be compared for costs. Cost comparisons would then create an incentive for efficiency improvements because efficient hospitals would attract increased funding. This paper applies stochastic frontier estimation of a production function to panel data for the period 92/93 to 95/96 in order to establish whether, in fact, efficiency improvements were realised over this period. The results show that there was no significant change to individual hospital efficiency levels. 2007 Working Paper http://hdl.handle.net/20.500.11937/20476 Centre for Research in Applied Economics, Curtin Business School, Curtin University of Technology fulltext
spellingShingle Victoria
efficiency measurement
casemix funding
stochastic frontier
Mangano, Maria
Measuring efficiency from casemix funding in Victoria using the stochastic frontier
title Measuring efficiency from casemix funding in Victoria using the stochastic frontier
title_full Measuring efficiency from casemix funding in Victoria using the stochastic frontier
title_fullStr Measuring efficiency from casemix funding in Victoria using the stochastic frontier
title_full_unstemmed Measuring efficiency from casemix funding in Victoria using the stochastic frontier
title_short Measuring efficiency from casemix funding in Victoria using the stochastic frontier
title_sort measuring efficiency from casemix funding in victoria using the stochastic frontier
topic Victoria
efficiency measurement
casemix funding
stochastic frontier
url http://hdl.handle.net/20.500.11937/20476