The estimation of production function among public hospitals of Kermanshah University of Medical Sciences (2001-11)

Background: One method to increase the performance and efficient use of hospital resources is using tools of economic analysis such as production function. The aim of this study was the estimation of production function among public hospitals of Kermanshah University of Medical Sciences during 2001- 11 using Cub Douglas production function.

Methods: The data about the dependent variable (number of hospitalized patients) and explanatory variables (numbers of active beds, nurses, doctors and other staffs) for six public hospitals during 2001- 11 were collected using information form.  The Data was analyzed employing Eviews software version 6.

Results: The production elasticity and the marginal production for all inputs were positive. The marginal production of active beds, doctors, nurses and other staffs were 76.7, 73.7, 19.3 and 6.7 respectively. The results also showed that the return to scale was increasing and the total input coefficient was equal to 1.45. 

Conclusion: The maximum of elasticity and marginal production belonged to the active beds. This implies that the hospitals administrators in response to change demands can use active beds more than others inputs. Besides, the marginal production of other staffs was less than other studies, so incentive policies for effective and efficient use in hospital resources will be essential.