Production of health & healthcare - The healthcare production function and hospital efficiency - How can inputs be combined to produce a certain output?

3 important questions on Production of health & healthcare - The healthcare production function and hospital efficiency - How can inputs be combined to produce a certain output?

What are the two main questions that need to be asked in order to make a healthcare production function?

  1. How can healthcare inputs be combined to produce a certain output?
  2. How easily can one production factor be substituted for others?

What are the three types of production inputs?

  1. Complements
  2. Perfect substitutes
  3. Imperfect substitutes

What are imperfect substitutes?

These inputs are similar and are able to do part of each others work/function. But you still need to have a mix of them in order to maximize your output/utility.

e.g. Surgeons and nurses

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