Managed Health Care and Technical Efficiency in the USA

Brown, H. Shelton (2001) Managed Health Care and Technical Efficiency in the USA. Discussion Paper No. 284, School of Economics, The University of Queensland.

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Author Brown, H. Shelton
Title Managed Health Care and Technical Efficiency in the USA
School, Department or Centre School of Economics
Institution The University of Queensland
Open Access Status Other
Report Number Discussion Paper No. 284
Publication date 2001-01-01
Subject 340204 Health Economics
Abstract/Summary By focusing exclusively on consumer benefit, previous studies of the effects of managed care have ignored important hospital efficiency gains. This study uses data from the 1992-1996 US Health Care Cost and Utilization Project, National Inpatient Sample to estimate a stochastic frontier model of hospital technical efficiency. After controlling for hospital and market area variables, the study finds strong evidence that increased managed care insurance in any given market is associated with improved technical efficiency in area hospitals. Using a two-stage estimation technique (Battese and Coelli 1995), the estimates are more efficient than for two-stage methods found in most of the literature.
Keyword private health insurance
managed care insurance
health care
United States

Document type: Department Technical Report
Collection: Discussion Papers (School of Economics)
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Created: Wed, 09 Jun 2004, 10:00:00 EST