Abstract:
:In this study we used stochastic frontier cost functions to estimate the teaching and research costs of Finnish hospitals. Average and marginal cost estimates were used to evaluate the current reimbursement system as well as to calculate the total expenditure on teaching and research in hospitals. The efficiency adjustment had significant impact on the marginal and average cost estimates of the teaching and research output. The main policy implication of this study is that university teaching hospitals are able to produce both teaching and research output at significantly lower marginal and average incremental costs than other hospitals. According to our results 55% of the total state reimbursement budget for teaching and research (FIM 665 million) should be allocated to teaching and 45% to research.
journal_name
Health Econjournal_title
Health economicsauthors
Linna M,Häkkinen U,Linnakko Edoi
10.1002/(sici)1099-1050(199806)7:4<291::aid-hec343subject
Has Abstractpub_date
1998-06-01 00:00:00pages
291-305issue
4eissn
1057-9230issn
1099-1050pii
10.1002/(SICI)1099-1050(199806)7:4<291::AID-HEC343journal_volume
7pub_type
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