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Hospital multifactor productivity: a presentation and analysis of two methodologies.

Cylus JD, Dickensheets BA - Health Care Financ Rev (2007-2008 Winter)

Bottom Line: In response to recent discussions regarding the ability of hospitals to achieve gains in productivity, we present two methodologies that attempt to measure multifactor productivity (MFP) in the hospital sector.We analyze each method and conclude that the inconsistencies in their outcomes make it difficult to estimate a precise level of MFP that hospitals have historically achieved.Our goal in developing two methodologies is to inform the debate surrounding the ability of hospitals to achieve gains in MFP, as well as to highlight some of the challenges that exist in measuring hospital MFP.

View Article: PubMed Central - PubMed

Affiliation: Office of the Actuary (OACT), Centers for Medicare & Medicaid Services, Baltimore, MD 21244-1850, USA. Jonathan.Cylus@cms.hhs.gov

ABSTRACT
In response to recent discussions regarding the ability of hospitals to achieve gains in productivity, we present two methodologies that attempt to measure multifactor productivity (MFP) in the hospital sector. We analyze each method and conclude that the inconsistencies in their outcomes make it difficult to estimate a precise level of MFP that hospitals have historically achieved. Our goal in developing two methodologies is to inform the debate surrounding the ability of hospitals to achieve gains in MFP, as well as to highlight some of the challenges that exist in measuring hospital MFP.

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Comparison of Labor Quantities
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f7-hcfr-29-2-049: Comparison of Labor Quantities

Mentions: Within inputs, we focus on the labor measure because the measure for intermediate inputs is identical for both methods and the capital weight is small. In Method 1, nominal labor expenses are deflated by ECIs for hospital workers. In Method 2, real labor quantities are estimated using annual hours of work per employee, number of work weeks, and total number of employees for hospitals. Method 1 yields a relatively smooth curve for changes in labor quantities; Method 2 yields a more volatile curve, likely because it incorporates multiple surveys with different sampling frames (Figure 7). The inconsistencies in these data suggest that further research is required in order to determine an accurate measure of labor quantities.


Hospital multifactor productivity: a presentation and analysis of two methodologies.

Cylus JD, Dickensheets BA - Health Care Financ Rev (2007-2008 Winter)

Comparison of Labor Quantities
© Copyright Policy
Related In: Results  -  Collection

Show All Figures
getmorefigures.php?uid=PMC4195020&req=5

f7-hcfr-29-2-049: Comparison of Labor Quantities
Mentions: Within inputs, we focus on the labor measure because the measure for intermediate inputs is identical for both methods and the capital weight is small. In Method 1, nominal labor expenses are deflated by ECIs for hospital workers. In Method 2, real labor quantities are estimated using annual hours of work per employee, number of work weeks, and total number of employees for hospitals. Method 1 yields a relatively smooth curve for changes in labor quantities; Method 2 yields a more volatile curve, likely because it incorporates multiple surveys with different sampling frames (Figure 7). The inconsistencies in these data suggest that further research is required in order to determine an accurate measure of labor quantities.

Bottom Line: In response to recent discussions regarding the ability of hospitals to achieve gains in productivity, we present two methodologies that attempt to measure multifactor productivity (MFP) in the hospital sector.We analyze each method and conclude that the inconsistencies in their outcomes make it difficult to estimate a precise level of MFP that hospitals have historically achieved.Our goal in developing two methodologies is to inform the debate surrounding the ability of hospitals to achieve gains in MFP, as well as to highlight some of the challenges that exist in measuring hospital MFP.

View Article: PubMed Central - PubMed

Affiliation: Office of the Actuary (OACT), Centers for Medicare & Medicaid Services, Baltimore, MD 21244-1850, USA. Jonathan.Cylus@cms.hhs.gov

ABSTRACT
In response to recent discussions regarding the ability of hospitals to achieve gains in productivity, we present two methodologies that attempt to measure multifactor productivity (MFP) in the hospital sector. We analyze each method and conclude that the inconsistencies in their outcomes make it difficult to estimate a precise level of MFP that hospitals have historically achieved. Our goal in developing two methodologies is to inform the debate surrounding the ability of hospitals to achieve gains in MFP, as well as to highlight some of the challenges that exist in measuring hospital MFP.

Show MeSH