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Productivity change and efficiency in the Swiss nursing home industry

Additional information

Authors
Filippini M., Masiero G., Santarossa M.
Type
Journal Article
Year
2022
Language
English
Abstract
Enhancing nursing home efficiency and productivity is a challenging task for health policy makers due to population ageing trends and increasing healthcare costs. In this study, we analyse nursing home efficiency and productivity using data from the universe of Swiss nursing homes for the period 2007–2015. We estimate a translog cost frontier via generalized true random effects models, which allow to disentangle the transient and the persistent components of inefficiency. In particular, we apply the simulated maximum likelihood approach proposed recently by scholars and then improve our estimates with a Mundlak correction. We find that total factor productivity change has dropped in recent years, and both efficiency components show scope for improvement. However, the marginal gains from transient efficiency measures are potentially larger, and could provide a more valid contribution to reverse the decreasing trend in total factor productivity change.
Journal
Applied Economics
Volume
54
Number
25
Start page number
2837
End page number
2850
ISSN
1466-4283