ABSTRACT
The paper analyzed the economies of scale of medical service and its characteristics according to the concepts and original of such a theory. It holds that hospital operations demands an appropriate size; for medical services in need of procuring large equipments, specialized service units of an appropriate size are more cost effective than service provision in individual hospitals; web release of medical service information and price information can help expand the market size; hospital alliances can integrate medical services horizontally and vertically. The above measures can attain the economies of scale for medical service.
ABSTRACT
Objective To analyse the economies of scale in public hospitals in Zhejiang Province. Methods One hundred and twenty-five public hospitals in Zhejiang Province with qualification no less than class two level two were selected as sample hospitals. Douglas production function was employed to analyse the relationship between investment and output in sample hospitals between 2004 to 2006, with two types of production models established by medical service and incomes in hospitals as dependent variables. Results From 2004 to 2006, the medical service and incomes of sample hospitals were in line with economies of scale. The production increase rate was higher than investment increase rate. The medical service, incomes, total assets and number of staff in class three hospitals were higher than those in class two hospitals (P =0.000). Conclusion Economies of scale is the ultimate incentive to continuous outstretch for hospitals. Hospitals should rationally control the scale so as to avoid problems in medical service caused by overstretch.
ABSTRACT
Objective: To measure the economic scale of military hospitals locating to the north of Central China. Methods: We collected the 2005-2007 panel data of 57 military hospitals in 3 different regions, and there were 171 observations. These data were used to estimate the total variable cost function by fixed effected model. The coefficient estimates were used to calculate the economic scale of hospitals of different categories. Results: The general hospitals with 891-1 230 beds showed economy of scale, those with more than 1 300 beds displayed diseconomy of scale. There was no obvious relation between beds and scale economy for the numbered hospitals. Conclusion: Larger market scale and disposition of administrative resources lead to economy of scale on expanded level in the general hospitals. Scale is not the determining factor; optimized allocation of resources, division of labor, and rational specialization are important for economy of scale.