Abstract
Nonprofit mental hospitals were reimbursed using two different systems: per diem and capitation. We estimate the production function of hospitals under these two reimbursement systems and show empirically that the per diem system caused negative marginal product of inputs that provided mainly maintenance. This waste of resources was remedied under capitation.
| Original language | English |
|---|---|
| Pages (from-to) | 459-466 |
| Number of pages | 8 |
| Journal | European Journal of Political Economy |
| Volume | 12 |
| Issue number | 3 |
| DOIs | |
| State | Published - Nov 1996 |
Bibliographical note
Funding Information:I thank the refereesf or very importantr emarksand the Schnitzer Foundation for Research on the Israeli Economy and Society for support.
Funding
I thank the refereesf or very importantr emarksand the Schnitzer Foundation for Research on the Israeli Economy and Society for support.
| Funders | Funder number |
|---|---|
| Schnitzer Foundation for Research on the Israeli Economy and Society |
Keywords
- Mental hospitals
- Reimbursement systems
