Transcription of MEASURING PRODUCTIVITY IN HEALTHCARE
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MEASURING PRODUCTIVITY IN HEALTHCARE
MEASURING PRODUCTIVITY IN HEALTHCARE : AN ANALYSIS OF THE LITERATURE Louise Sheiner and Anna Malinovskaya Hutchins Center on Fiscal and Monetary Policy at Brookings INTRODUCTIONM easured PRODUCTIVITY growth in the health care industry has generally been well below that of the economy as a whole. Many analysts attribute this low PRODUCTIVITY growth to measurement problems. They argue that most of the PRODUCTIVITY growth in health care has come in the form of improved quality rather than lower cost. Furthermore, they argue that many of the innovations that have reduced costs and increased PRODUCTIVITY such as moving from inpatient to outpatient care are not captured in the standard measures. Others, however, believe that even when properly measured, PRODUCTIVITY growth in the health sector is low because it is a service sector that has limited scope for efficiency improvements (Baumol s cost disease argument).
Chansky, Garner, and Raichoudhary (2015) Hospitals Labor Productivity 1993-2012 0.5% Fisher (2007) Physician Offices MFP 1983-1992 1.5%. 1993-2000 -0.6%. 2001-2004 1.7%. ...
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