Sources of Productivity Growth in Health Services: A Case Study of Queensland Public Hospitals

Son Nghiem*, Tim Coelli, Scott Barber

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

18 Citations (Scopus)

Abstract

Improving the performance of health sector is one of the most popular issues in Australia. This paper contributes to this important policy debate by examining the efficiency of health facilities in Queensland using the Malmquist Productivity Index (MPI). This method is selected because it is suitable for the multi-input, multi-output, and not-for-profit natures of public health services. In addition, with the availability of panel data we can decompose productivity growth into useful components, including technical efficiency changes, technological changes and scale changes. The results revealed an average of 1.6 per cent of growth in total factor productivity (TFP) among Queensland public hospitals in the study period. The main component contributing to the modest improvement of TFP during the period was catching-up at an average of 1.0 per cent. SFA estimates suggest that the number of nurses is the most influential determinant of output.

Original languageEnglish
Pages (from-to)37-48
Number of pages12
JournalEconomic Analysis and Policy
Volume41
Issue number1
DOIs
Publication statusPublished - 2011
Externally publishedYes

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