Multifactor productivity in physicians' offices: an exploratory analysis

This article constructs measures of multifactor productivity (MFP) for physicians' offices using a variation of the productivity methodology developed by the U.S. Bureau of Labor Statistics (BLS) for other industries. Two alternatives measures are presented and both yield positive gains in physicians' office MFP over the study period. These increases lie below MFP rates for the general economy (private non-farm business sector). During 1983-1992, physicians' office MFP growth exceeded general economy MFP. For 1993-2000, physicians' office MFP growth was both negative and below general economy rates. For the most recent period analyzed, 2001-2004, physician's office MFP grew nearly as quickly as the general economy.