Hospital Technical Efficiency Measurement Through of a Stochastic Frontier Cost Panel

  •  João da Silveira    
  •  Lucélia Juliani    
  •  Lucas Ávila    
  •  José De Borba    


This article aims to evaluate the relative technical efficiency of the three clinics belonging to the University Hospital of the Federal University of Santa Catarina, RS, Brazil, in a two years period. The specification of the econometric model includes the analysis of productive sectors from the same institution in different periods of time. A stochastic frontier cost CD function using the composed error model was estimated by maximum likelihood (MLE) for a monthly data panel. The efficiency measures were computed using the formula adapted to the costs, based on parameters estimated by MLE. The results are encouraging and intriguing, especially regarding the inclusion of new variables, the expansion of the sample and the real utility of the efficiency ratios in the effective management task of productive resources within a single firm.

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