Total Factor Productivity Growth in Hospitals in Ireland 1995-1998: A Non-Parametric Approach

This paper analyses the development of productivity and efficiency in the production of hospital care in Ireland from 1995 to 1998. Using Malmquist Productivity Indices, we look at changes in efficiency over time. This approach provides information on the types of hospitals that have increased or decreased efficiency during each time frame, and the type of inefficiency involved – pure technical, scale, or technological. Our results show that on average between 1995 and 1998, both technological and efficiency changes contribute to higher levels of productivity in General and Regional hospitals, but lead to lower levels of productivity in County hospitals. However, the contribution of these components of productivity varies over time.