The principal aim of this paper is to estimate a stochastic frontier cost
function and an inefficiency effects model in the analysis of the primary
health care services purchased by the public authority and supplied by 180
providers in 1996 in Catalonia. The evidence from our sample does not support
the premise that contracting out has helped improve purchasing cost
efficiency in primary care. Inefficient purchasing cost was observed in the
component of this purchasing cost explicitly included ...
The principal aim of this paper is to estimate a stochastic frontier cost
function and an inefficiency effects model in the analysis of the primary
health care services purchased by the public authority and supplied by 180
providers in 1996 in Catalonia. The evidence from our sample does not support
the premise that contracting out has helped improve purchasing cost
efficiency in primary care. Inefficient purchasing cost was observed in the
component of this purchasing cost explicitly included in the contract between
purchaser and provider. There are no observable incentives for the
contracted-out primary health care teams to minimise prescription costs, which
are not explicitly included in the present contracting system.
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