2006
DOI: 10.1007/s11123-006-0021-7
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Measuring performance in the presence of stochastic demand for hospital services: an analysis of Belgian general care hospitals

Abstract: Since demand for hospital services is subject to substantial variability, the relationship between uncertain demand, excess capacity, hospital costs and performance should be investigated thoroughly. In this paper a waiting time indicator to proxy hospital standby capacity is incorporated into a multi-product translog cost function for Belgian general care hospitals. The indicator is derived from queuing theory and improves on the conventionally used (inverse of the) occupancy rate. The multi-product stochasti… Show more

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Cited by 27 publications
(19 citation statements)
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“…Berry et al [2] concluded from their study that hospital size is the single largest predictor of operating room productivity. To the contrary, Smet, [3] and Peltokorpi [4] concluded that smaller hospitals are more productive indicating that economies of scale work in reverse direction.…”
Section: Literture Reviewmentioning
confidence: 99%
See 1 more Smart Citation
“…Berry et al [2] concluded from their study that hospital size is the single largest predictor of operating room productivity. To the contrary, Smet, [3] and Peltokorpi [4] concluded that smaller hospitals are more productive indicating that economies of scale work in reverse direction.…”
Section: Literture Reviewmentioning
confidence: 99%
“…[1,3,7] However, the number of beds may not be a good indicator of scale for all healthcare services, as beds have a different role in surgery and internal medicine. Cowing et al [18] demonstrated that analysis of scale effects on productivity suffered from confusion between long-and short-term effects.…”
Section: Literture Reviewmentioning
confidence: 99%
“…Smet (2007) Measured efficiency and performance in the presence of stochastic demand for hospital services in Belgian hospitals.…”
Section: Demand Management Research Agendamentioning
confidence: 99%
“…To illustrate, a 1% increase in variance would lead to a 0.092% increase in inpatient operating costs. Smet (2007) measured the performance of Belgian general care hospitals in the presence of stochastic demand for hospital services. To measure standby capacity held by hospitals to serve unexpected demand he used a waiting time indicator derived from queuing theory.…”
Section: Review Of Empirical Studiesmentioning
confidence: 99%