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Product/Study: The Canadian Productivity Review: "Experimental Measures of Output and Productivity in the Canadian Hospital Sector, 2002 to 2010", No. 34 Product/Study: The Canadian Productivity Review: "Experimental Me...

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Product/Study: The Canadian Productivity Review: "Experimental Measures of Output and Productivity in the Canadian Hospital Sector, 2002 to 2010", No. 34

Issued By
April 23, 2014

Recent discussions about health care spending have focused on two issues: 1) the extent to which the increase in heath care spending is due to an increase in the quantity as opposed to the price of health care services, and 2) the efficiency and productivity of health care providers (e.g., hospital sectors, office of physicians, and long-term care).

The key to addressing both issues is a direct output measure of health care services-a measure that does not currently exist. In the National Accounts, output of the health care sector is measured by the volume of inputs, which includes labour costs for physicians, nurses and administrative staff, consumption of capital, and intermediate inputs. An input-based output measure assumes that there are no productivity gains in the health care sector. As a result, it does not provide a measure of productivity performance, nor does it allow a decomposition of total health care expenditures into price and output quantity components.

The main objective of this paper is to develop an experimental direct output measure for the Canadian hospital sector that can be used to address those issues. A large number of countries have already constructed a direct output measure of the hospital sector and other healthcare sectors.

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This document was issued by Statistics Canada and was initially posted at www.statcan.gc.ca. It was distributed, unedited and unaltered, by noodls on 2014-04-23 15:27:14. The original document issuer is solely responsible for the accuracy of the information contained therein.

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