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Information Journal Paper

Title

THE ESTIMATION OF COST FUNCTION IN ILAM HOSPITALS DURING 2003-2012

Author(s)

ASGARI H. | Issue Writer Certificate 

Pages

  190-198

Abstract

 Introduction: Hospital is facing with different aspects both income and cost as a firm. On other hand, health cost will always take a great share of family expenditure. So, HOSPITALS are constantly obliged to apply and use cost-benefit analysis to increase efficiency and productivity. Accordingly, institution managers have to be aware of hospital cost function.Materials & methods: This research has made an attempt to estimate the regression function of hospital COSTS based on econometrics method with the help of 14 main indices which will affect hospital cost in 8 governmental HOSPITALS of Ilam province during 2003-2013. It is worth to mention that Translog function specification has been applied in the estimation.Findings: Results indicate that the cost of Ilam hospital has a positive relationship with labor -capital price and quantity of PRODUCTION positively during 2003-2013. Besides, since the coefficient is meaningful at 0.05 percent, so it shows that variables like the emergency rooms, eqiupements, buildings, bedridden time, releasing and mortality rates has reciprocal effect on hospital cost. 10 percent increase in quality of services leads to 34 percent increase in hospital cost.Discussion & Conclusion: Since there is a direct relationship between the quality of services, relative cost of labor and investment and hospital cost so, in order to decrease the hospital cost, one of the following two effective factors including labor force or investment should be decreased. Labor force includes the number of nurses and investment includes eqiupements, building, and so forth. PRODUCTION decrease has a direct relationship with decrease in number of visited, bedridden, and released patients, and decrease in none of them is acceptable. So, the labor relative price decrease can be considered as the best solution for decreasing HOSPITALS’ relative cost which is obtainable via change in the condition of labor engagement in HOSPITALS, application of the lowest wage rule, and annual wage increase.

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    APA: Copy

    ASGARI, H.. (2014). THE ESTIMATION OF COST FUNCTION IN ILAM HOSPITALS DURING 2003-2012. JOURNAL OF ILAM UNIVERSITY OF MEDICAL SCIENCES, 22(SUPPLEMENT), 190-198. SID. https://sid.ir/paper/90259/en

    Vancouver: Copy

    ASGARI H.. THE ESTIMATION OF COST FUNCTION IN ILAM HOSPITALS DURING 2003-2012. JOURNAL OF ILAM UNIVERSITY OF MEDICAL SCIENCES[Internet]. 2014;22(SUPPLEMENT):190-198. Available from: https://sid.ir/paper/90259/en

    IEEE: Copy

    H. ASGARI, “THE ESTIMATION OF COST FUNCTION IN ILAM HOSPITALS DURING 2003-2012,” JOURNAL OF ILAM UNIVERSITY OF MEDICAL SCIENCES, vol. 22, no. SUPPLEMENT, pp. 190–198, 2014, [Online]. Available: https://sid.ir/paper/90259/en

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    دانشگاه امام حسین
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    کلید پژوه
    ایران سرچ
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