Efficiency Analysis of Rural Hospitals: Parametric and Semi-parametric Approaches

dc.creatorNedelea, I. Cristian
dc.creatorFannin, James Matthew
dc.date2017-04-01T13:52:52Z
dc.date.accessioned2026-07-09T05:54:14Z
dc.descriptionThis paper examined cost efficiency differences between rural hospitals participating in the Critical Access Hospital (CAH) Program and a group of non-converting, prospectively paid rural hospitals using both a two-stage semi-parametric approach as well as stochastic frontier analysis (SFA). CAHs receive Medicare cost-based reimbursement, in contrast with the rest of the hospitals reimbursed under Medicare prospective payment system (PPS). However, cost-based reimbursement has been associated with inefficiency in hospital operations and, consequently, concerns have been raised about the efficiency of CAHs. Results showed a positive and significant effect of CAH status on cost inefficiency under both model specifications suggesting that CAHs were less cost efficient than non-converting rural hospitals.
dc.identifierdoi:10.22004/ag.econ.119725
dc.identifierhttps://ageconsearch.umn.edu/record/119725/files/Nedelea_FanninSAEA2012.pdf
dc.identifierhttp://ageconsearch.umn.edu/record/119725
dc.identifier.urihttp://hdl.handle.net/123456789/569859
dc.languageeng
dc.publisher
dc.sourcehttp://ageconsearch.umn.edu/record/119725
dc.titleEfficiency Analysis of Rural Hospitals: Parametric and Semi-parametric Approaches
dc.typeText

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