Health systems performance: a statewide analysis

In this study, we examine the statewide consumption of health care resources. We assume that the physicians, hospital beds, nurses, and pharmaceuticals represent inputs to the health care delivery system required to treat the population of each state. Since health care resources needed by the various age groups of the population are different, we categorize the population into under 18 years of age, 18 to under 65 years of age, and 65 years of age and older. We develop efficient production frontiers and estimate the overall efficiency of individual states, and also the efficiencies of four inputs. In addition, we estimate the excess number of physicians, nurses, hospital beds, and pharmaceuticals consumed. This study should be useful for the states to help identify appropriate policy measures to make their health delivery systems more efficient.