Abstract
This paper summarizes the generalfindings of a research effort designed to complete a detailed analysis to identify and measure the effects of factors which significantly affect the cost and efficiency of the short-term general hospital system in the United States. The empirical analysis involved data on approximately 6, 000 hospitalsfor the years 1965, 1966, and 1967 and involved a model which expressed hospital cost as a function of the level of output, the quality of services provided, the scope of services provided, factor prices, and relative efficiency. The statistical analysis does provide insight to the factors affecting hospital cost: hospital services are produced subject to economies of scale but the absolute magnitudes are rather insignificant; on the basis of the exceedingly limited data available it can be concluded that quality does affect costs; medical education is a significant factor affecting hospital costs; and product mix has a significant impact on costs. Three separate analyses are summarized specific to the product mix difference aspect of the production of hospital services, its effect on hospital cost analysis, and techniques that can be employed to accountfor product mix. Finally, an analysis of the characteristics of high cost and low cost hospitals is summarized.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callMore From: The Milbank Memorial Fund Quarterly. Health and Society
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
