Production of health & healthcare - The healthcare production function and hospital efficiency - Which hospitals are most efficient?

3 important questions on Production of health & healthcare - The healthcare production function and hospital efficiency - Which hospitals are most efficient?

Which three dimensions are there of efficiency in hospitals?

  1. Technical efficiency
  2. allocative efficiency
  3. efficient scale of production

What is technical efficiency?

a firm is most technical efficient when it uses the least inputs to produce a given level of output.

What is allocative efficiency?

The best possible use of given resources in order to benefit society

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