Effects of Ownership on Hospital Efficiency in Germany
BuR Business Research Journal, Vol. 2, No. 2, December 2009
31 Pages Posted: 12 Mar 2010 Last revised: 20 Aug 2010
Date Written: March 11, 2010
The objective of our study was to evaluate the efficiency of public, private for-profit, and private non-profit hospitals in Germany. First, bootstrapped data envelopment analysis (DEA) was used to evaluate the efficiency of a panel (n = 1,046) of public, private for-profit, and private non-profit hospitals between 2002 and 2006. This was followed by a second-step truncated linear regression model with bootstrapped DEA efficiency scores as dependent variable. The results show that public hospitals performed significantly better than their private for-profit and non-profit counterparts. In addition, we found a significant positive association between hospital size and efficiency, and that competitive pressure had a significant negative impact on hospital efficiency.
Keywords: public hospitals, ownership, data envelopment analysis, performance measurement, nonparametric technique, truncated regression, Germany
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