An examination of health care efficiency in Canada: a two-stage semi-parametric approach
Abstract Using data envelopment analysis, we examine the efficiency of Canada's universal health care system by considering a set of labour (physicians) and capital (beds) inputs, which produce a level of care (measured in terms of health quality and quantity) in a given region. Data from 2013–...
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Language: | English |
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Cambridge University Press (CUP)
2024
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Online Access: | http://dx.doi.org/10.1017/s1744133124000100 https://www.cambridge.org/core/services/aop-cambridge-core/content/view/S1744133124000100 |
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crcambridgeupr:10.1017/s1744133124000100 2024-06-23T07:54:47+00:00 An examination of health care efficiency in Canada: a two-stage semi-parametric approach Watson, Barry Amin, Gholam R. 2024 http://dx.doi.org/10.1017/s1744133124000100 https://www.cambridge.org/core/services/aop-cambridge-core/content/view/S1744133124000100 en eng Cambridge University Press (CUP) https://www.cambridge.org/core/terms Health Economics, Policy and Law page 1-20 ISSN 1744-1331 1744-134X journal-article 2024 crcambridgeupr https://doi.org/10.1017/s1744133124000100 2024-06-05T04:03:56Z Abstract Using data envelopment analysis, we examine the efficiency of Canada's universal health care system by considering a set of labour (physicians) and capital (beds) inputs, which produce a level of care (measured in terms of health quality and quantity) in a given region. Data from 2013–2015 were collected from the Canadian Institute for Health Information regarding inputs and from the Canadian Community Health Survey and Statistics Canada regarding our output variables, health utility (quality) and life expectancy (quantity). We posit that variation in efficiency scores across Canada is the result of regional heterogeneity regarding socioeconomic and demographic disparities. Regressing efficiency scores on such covariates suggests that regional unemployment and an older population are quite impactful and associated with less efficient health care production. Moreover, regional variation indicates the Atlantic provinces (Newfoundland, Prince Edward Island, Nova Scotia, New Brunswick) are quite inefficient, have poorer economic prospects, and tend to have an older population than the rest of Canada. Oaxaca-Blinder decompositions suggest that the latter two factors explain about one-third of this efficiency gap. Based on our two-stage semi-parametric analysis, we recommend Canada adjust their transfer payments to reflect these disparities, thereby potentially reducing inequality in regional efficiency. Article in Journal/Newspaper Newfoundland Prince Edward Island Cambridge University Press Canada Health Economics, Policy and Law 1 20 |
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Cambridge University Press |
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English |
description |
Abstract Using data envelopment analysis, we examine the efficiency of Canada's universal health care system by considering a set of labour (physicians) and capital (beds) inputs, which produce a level of care (measured in terms of health quality and quantity) in a given region. Data from 2013–2015 were collected from the Canadian Institute for Health Information regarding inputs and from the Canadian Community Health Survey and Statistics Canada regarding our output variables, health utility (quality) and life expectancy (quantity). We posit that variation in efficiency scores across Canada is the result of regional heterogeneity regarding socioeconomic and demographic disparities. Regressing efficiency scores on such covariates suggests that regional unemployment and an older population are quite impactful and associated with less efficient health care production. Moreover, regional variation indicates the Atlantic provinces (Newfoundland, Prince Edward Island, Nova Scotia, New Brunswick) are quite inefficient, have poorer economic prospects, and tend to have an older population than the rest of Canada. Oaxaca-Blinder decompositions suggest that the latter two factors explain about one-third of this efficiency gap. Based on our two-stage semi-parametric analysis, we recommend Canada adjust their transfer payments to reflect these disparities, thereby potentially reducing inequality in regional efficiency. |
format |
Article in Journal/Newspaper |
author |
Watson, Barry Amin, Gholam R. |
spellingShingle |
Watson, Barry Amin, Gholam R. An examination of health care efficiency in Canada: a two-stage semi-parametric approach |
author_facet |
Watson, Barry Amin, Gholam R. |
author_sort |
Watson, Barry |
title |
An examination of health care efficiency in Canada: a two-stage semi-parametric approach |
title_short |
An examination of health care efficiency in Canada: a two-stage semi-parametric approach |
title_full |
An examination of health care efficiency in Canada: a two-stage semi-parametric approach |
title_fullStr |
An examination of health care efficiency in Canada: a two-stage semi-parametric approach |
title_full_unstemmed |
An examination of health care efficiency in Canada: a two-stage semi-parametric approach |
title_sort |
examination of health care efficiency in canada: a two-stage semi-parametric approach |
publisher |
Cambridge University Press (CUP) |
publishDate |
2024 |
url |
http://dx.doi.org/10.1017/s1744133124000100 https://www.cambridge.org/core/services/aop-cambridge-core/content/view/S1744133124000100 |
geographic |
Canada |
geographic_facet |
Canada |
genre |
Newfoundland Prince Edward Island |
genre_facet |
Newfoundland Prince Edward Island |
op_source |
Health Economics, Policy and Law page 1-20 ISSN 1744-1331 1744-134X |
op_rights |
https://www.cambridge.org/core/terms |
op_doi |
https://doi.org/10.1017/s1744133124000100 |
container_title |
Health Economics, Policy and Law |
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1 |
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20 |
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1802647052367167488 |