Work

Activity‐based funding reform and the performance of public hospitals: The case of Queensland, Australia

Year: 2024

Type: article

Abstract: This study investigates the impact of activity‐based funding (ABF) on the performance of hospitals by exploiting a natural experiment that happened in the state of Queensland, Australia. To examine the outcome of the reform, the performance of hospitals is measured by the technical efficiency estimated from data envelopment analysis (DEA) models. We try to identify the causal effect of ABF on the technical efficiency of hospitals by incorporating difference‐in‐differences approach in the popular two‐stage DEA framework. We find empirical evidence that ABF improves the technical efficiency of hospitals.

Source: Economic Inquiry

DOI: 10.1111/ecin.13246

Authors: Bao Hoang Nguyen, Shawna Grosskopf, Jongsay Yong, Valentin Zelenyuk

Institutions: The University of Queensland, Oregon State University, The University of Melbourne

Language: English

Topic: Efficiency Analysis Using DEA

Subfield: Management Science and Operations Research

Field: Decision Sciences

Domain: Social Sciences

SDG: Good health and well-being

Open Access status: hybrid

Estimated APC paid: $3,400