If specialisation is supposed to reduce costs why is reimbursement often more generous for specialist than non-specialist hospitals? Specialist hospitals claim that gains from specialism are offset because they attract patients with more complex care requirements. We assess the foundation for...

We evaluate how the productive structure and level of specialization of a hospital affect technical efficiency by analyzing a six-year panel database (2000/2005) drawn from hospital discharge records and Ministry of Health data. We adopt a distance function approach, while measuring the...