ArticleThe European journal of health economics : HEPAC : health economics in prevention and care2015
Does prospective payment increase hospital (in)efficiency? Evidence from the Swiss hospital sector.
Article in The European journal of health economics : HEPAC : health economics in prevention and care, 2015. The graph could read no effect estimate from its abstract, so it casts no vote on the map. Cited by 10 papers.
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Who cites it
10 citing papers in PubMed.
- Unravelling heterogeneity in efficiency measurements: a case study of public hospitals in Spain.The European journal of health economics : HEPAC : health economics in prevention and care · 2026Article
- The impacts of the diagnosis-related group payment reform on hospitalization-related medical expenses: evidence from China.Health economics review · 2025Article
- Does Global Budget promote the construction of integrated healthcare delivery system? Evidence from Sanming, China.BMC public health · 2025Article
- Does global capitation prospective payment promote integrated delivery networks? Evidence from China's compact county medical communities.International journal for equity in health · 2025Article
- Identifying and prioritizing inefficiency causes in Iran's health system.Cost effectiveness and resource allocation : C/E · 2024Article
- Hospital productivity bias when not adjusting for cost heterogeneity: The case of Spain.PloS one · 2019Article
- Effectiveness evaluation of quota payment for specific diseases under global budget: a typical provider payment system reform in rural China.BMC health services research · 2018Article
- Choice of reserve capacity by hospitals: a problem for prospective payment.The European journal of health economics : HEPAC : health economics in prevention and care · 2018Article
- Payment schemes and cost efficiency: evidence from Swiss public hospitals.International journal of health economics and management · 2015Article
- The impact of the global budget system on dynamics of dental manpower and utilization of dental services.Dental research journalArticle
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Abstract
Several European countries have followed the USA in introducing prospective payment for hospitals with the expectation of achieving cost efficiency gains. This article examines whether theoretical expectations of cost efficiency gains can be empirically confirmed. In contrast to previous studies, the analysis of hospitals in Switzerland provides a comparison of a retrospective per diem payment system with a prospective global budget and a payment per patient case system. Using a sample of approximately 90 public financed Swiss hospitals during the years 2004-2009 and Bayesian inference of a standard and a random parameter frontier model, cost efficiency gains are found, particularly with payment per patient case. Prospective payment, designed to put hospitals at operating risk, is more effective in terms of cost reduction than the retrospective alternative. However, hospitals are heterogeneous with respect to their production technologies, making a random parameter frontier model the superior specification for Switzerland.
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