In search of optimal productivity and hospital size: a case study

This study examines the relationship between optimal employee productivity and hospital size based on a sample from the state of Texas during 1982-91. Full-time equivalents (FTEs) per adjusted occupied bed is employed to represent productivity. The number of beds, total employees, and eight standard categories are used to measure hospital size. The impact of the diagnosis-related group implementation on productivity is also tested. Major findings suggest that productivity is found to be the highest for hospitals with 272 beds or 945 employees or in the category IV or V. The implementation of the DRG has not increased employee productivity.