EI Feature: "Activity-based funding reform and the performance of public hospitals..."
The EI Editors invite you to browse this October 2024 issue featured article:
"Activity-based funding reform and the performance of public hospitals: The case of Queensland, Australia"
- Bao Hoang Nguyen, The University of Queensland, Brisbane, Australia
- Shawna Grosskopf, Oregon State University, Corvallis, USA
- Jongsay Yong, The University of Melbourne, Australia
- Valentin Zelenyuk, The University of Queensland, Brisbane, Australia
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.
First published: 08 August 2024