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. 2007;29(2):49-64.

Hospital multifactor productivity: a presentation and analysis of two methodologies

Jonathan D Cylus  1 , Bridget A Dickensheets
Affiliations

Hospital multifactor productivity: a presentation and analysis of two methodologies

Jonathan D Cylus et al. Health Care Financ Rev. 2007.

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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Figures

Figure 1
Figure 1. Average Annual Percent Change in Hospital Multifactor Productivity (MFP): 1981-2005
Figure 2
Figure 2. 10-Year Moving Average Percent Change in Hospital Multifactor Productivity (MFP) and Private Non-Farm Business Economywide MFP:1990-2005
Figure 3
Figure 3. Average Annual Percent Change in Hospital Multifactor Productivity (MFP) for Method 1 and Sensitivity 1: 1981-2005
Figure 4
Figure 4. 10-Year Moving Average Percent Change in Hospital Multifactor Productivity (MFP) for Method 1 and Sensitivity 1: 1990-2005
Figure 5
Figure 5. Average Annual Percent Change in Hospital Multifactor Productivity (MFP) for Method 2 and Sensitivity 2: 1981-2005
Figure 6
Figure 6. 10-Year Moving Average Percent Change in Hospital Multifactor Productivity (MFP) for Method 2 and Sensitivity 2: 1990-2005
Figure 7
Figure 7. Comparison of Labor Quantities
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