Economies of Scale and Scope in the Provision of Diagnostic Techniques and Therapeutic Services in Portuguese Hospitals

28 Pages Posted: 16 Sep 2009 Last revised: 5 Oct 2009

See all articles by Ricardo Gonçalves

Ricardo Gonçalves

Universidade Católica Portuguesa - Faculdade de Economia e Gestão

Pedro P. Barros

Universidade Nova de Lisboa

Date Written: September 16, 2009

Abstract

This paper analyses the provision of auxiliary clinical services that are typically carried out within the hospital. We estimate a flexible cost function for the three most important (cost-wise) diagnostic techniques and therapeutic services in Portuguese hospitals: Clinical Pathology, Medical Imaging and Physical Medicine and Rehabilitation. Our objective in carrying out this estimation is the evaluation of economies of scale and scope in the provision of these services. For all services, we find evidence of ray economies of scale and some evidence of economies of scope. These results have important policy implications and can be related to the ongoing discussion of where and how should hospitals provide these services.

Keywords: translog cost function, economies of scale, economies of scope, clinical services, hospitals

JEL Classification: D24, I12, I18

Suggested Citation

Gonçalves, Ricardo and Pita Barros, Pedro Luis, Economies of Scale and Scope in the Provision of Diagnostic Techniques and Therapeutic Services in Portuguese Hospitals (September 16, 2009). Available at SSRN: https://ssrn.com/abstract=1474331 or http://dx.doi.org/10.2139/ssrn.1474331

Ricardo Gonçalves (Contact Author)

Universidade Católica Portuguesa - Faculdade de Economia e Gestão ( email )

Palma de Cima
P-1649-023 Lisbon, Porto 4169-005
Portugal
+ 351 22 6196200 (Phone)

HOME PAGE: http://www.porto.ucp.pt

Pedro Luis Pita Barros

Universidade Nova de Lisboa ( email )

Campus de Campolide
Lisboa, 1099-032
Portugal
+351 21 383 3624 (Phone)
+351 21 388 6073 (Fax)

HOME PAGE: http://ppbarros.fe.unl.pt

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