How to improve healthcare system’
efficiency has been highly concerned by Chinese government. The objectives of
this paper are to establish production function of medical service and analyze
returns to scale; to measure technical efficiency; and to highlight possible
policy implications of the results for policy makers. Stochastic Frontier
Approach (SFA) is employed in this paper based on data from 2010 China Health
Statistical Yearbook. These findings suggest that increasing investment on
human resource is a key factor for raising CHS’ efficiency. Operation model and
institution will contribute to technology efficiency of CHS.
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H. Leleu, J. Moises and V. Valdmanis, “Optimal Productive Size of Hospital’s Intensive Care Units,”International Journal Production Economics, Vol. 136, No. 2, 2012, pp. 297-305.doi:10.1016/j.ijpe.2011.12.006
S. Grosskopf, S. Self and O. Zaim, “Estimating the Efficiency of the System of Healthcare Financing in Achieving Better Health,” Applied Economics, Vol.38, No.13, 2006, pp.1477-1488. doi:10.1080/00036840500424798
J. Spinks and B. Hollingsworth, “Cross-country Comparisons of Technical Efficiency of Health Production: A Demonstration of Pitfalls,” Applied Economics, Vol. 41, No. 4, 2009, pp.417-427.