This article presents a parametric approach to healthcare system productivity analysis across the USA between 2000 and 2003. Though similar productivity analyses have been made on a country level, little research is devoted to state-level healthcare efficiency analysis. Hence, the aim of this exercise is to compute the so-called technical frontier also known as the best practice frontier which represents maximum obtainable output given inputs. The difference between each state’s health level and its potentially attainable maximum denotes a given state healthcare inefficiency. The Stochastic Frontier approach used in this article allows the computation of efficiency scores as well as accounting for random disturbances in the data.
"State Level Efficiency Measures for Healthcare Systems,"
SPNHA Review: Vol. 6
, Article 3.
Available at: http://scholarworks.gvsu.edu/spnhareview/vol6/iss1/3