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Efficiency of physician specialist groups.

Lukas Kwietniewski1, Jonas Schreyögg2

  • 1Hamburg Center for Health Economics, University of Hamburg, Hamburg, Germany.

Health Care Management Science
|March 2, 2017
PubMed
Summary

Specialization and participation in disease management programs boost physician practice efficiency. Group practices outperform solo practices, highlighting the importance of analyzing all efficiency types for different physician groups.

Keywords:
Cost efficiencyPanel dataPhysician practice efficiencyProfit efficiencyStochastic frontier analysisTechnical efficiency

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Area of Science:

  • Health Economics
  • Medical Practice Management

Background:

  • Estimating physician practice efficiency is crucial for healthcare resource allocation.
  • Previous studies often focused on single efficiency types or lacked comprehensive data.

Purpose of the Study:

  • To simultaneously estimate technical, cost, and profit efficiency in German physician practices.
  • To investigate factors influencing efficiency across different physician specialist groups.

Main Methods:

  • Stochastic frontier analysis (SFA) applied to a unique panel data set of 4964 German physician practices (2008-2010).
  • Utilized translog functional form for production/cost and profit functions.
  • Employed a comprehensive one-step approach for panel data (Battese and Coelli).

Main Results:

  • Participation in disease management programs and higher specialization significantly increase technical, cost, and profit efficiency.
  • Group practices demonstrate significantly higher efficiency compared to single practices.
  • Efficiency gains are linked to process standardization and shared resources like expensive equipment.

Conclusions:

  • Disease management programs and specialization are key drivers of physician practice efficiency.
  • Group practice structures offer advantages over solo practices.
  • Comprehensive analysis of multiple efficiency types is essential for understanding physician group performance.