Performance of production factors in general hospitals affiliated to Iran University of Medical Sciences

Abstract Background: For the purpose of optimal utilization and boosting the productivity of resources, hospitals as economic firms must use economic analysis. Objective: Assessing the performance of production factors in general hospitals affiliated to Iran University of Medical Sciences (1991-2001). Methods: This was a cross-descriptive study carried out in 2003. Information sheets were used to gather the data, which were further analyzed using Eviews software and SuR statistical test. Findings: Production elasticity of physicians, nurses, active beds, and paramedical personnel were 0.57, 0.33, 0.24, and -0.07, respectively. Arerage length of stay and subjective variables had an effect rate of -0.188 and 0.47 on hospitals' production, respectively. All production factors showed positive values of marginal product except for paramedical personnel and there was increasing return to scale in target hospitals. Conclusion: All production factors were in economic region of production and had optimal performance except for paramedical forces. Thus, in order to boost the total product, an increase of all factors except the paramedical personnel, is recommended.