Vitaliano, Donald F.; Toren, Mark - In: Eastern Economic Journal 22 (1996) 2, pp. 161-175
A stochastic frontier cost function is fitted to data for 219 New York hospitals (1991). Economic inefficiency is … estimated to be about 18 percent, comparable to published estimates for hospitals nationwide. Hospitals with over 300 beds are … control costs appears warranted. Rochester area hospitals, where a system of monopsony reimbursement exists, are more …