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2011•RePEc: Research Papers in EconomicsOpen access

Determinants of Cost Inefficiency of Critical Access Hospitals: A Two-stage, Semi-parametric Approach

I. Cristian Nedelea, J. Matthew Fannin, Nedelea, I. Cristian, Fannin, James Matthew

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Abstract

This study examines, post-conversion, cost inefficiency of Critical Access Hospitals (CAH) using a two-stage approach. While the results suggest that Medicare cost-based reimbursement and longer participation in the CAH program may increase the cost inefficiency of CAHs, the extent of this inefficiency increase is lower than what previous literature showed.

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What this paper is about

This study examines, post-conversion, cost inefficiency of Critical Access Hospitals (CAH) using a two-stage approach. While the results suggest that Medicare cost-based reimbursement and longer participation in the CAH program may increase the cost inefficiency of CAHs, the extent of this inefficiency increase is lower than what previous literature showed.

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Available abstract

This study examines, post-conversion, cost inefficiency of Critical Access Hospitals (CAH) using a two-stage approach. While the results suggest that Medicare cost-based reimbursement and longer participation in the CAH program may increase the cost inefficiency of CAHs, the extent of this inefficiency increase is lower than what previous literature showed.

Key concepts: Inefficiency, Reimbursement, Economics, Business, Actuarial science, Operations management, Public economics, Microeconomics

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