Analyzing Cost and Production in Hospital Dental Care: Public vs. Private Ownership Impact

A Cost and Production Analysis of Hospital Dental Care Programs

Date: September 1, 1987

By: T.T. Wan, P.R. Vanostenberg, J.J. Salley, D.W. Singley, and J.L. West

Abstract:

This study provide hospitals with valuable insights on expanding their dental services by analyzing cost and production functions. Our analysis indicates that hospital ownership public or private and the size of dental clinics are significant factors affecting service costs and volume.

Among our 23 studied hospitals, it was observed that private hospitals incur lower costs per visit compared to public ones, with higher attance from pd atting dentists, lower salaries for resident dentists, and a greater proportion of Medicd and patient self-pay billings. Stratification by hospital ownership and size further accentuated these basic differences, especially within small clinics. When considering large public and private hospitals, the key characteristics were strikingly similar except for the aforementioned billing structures.

Our econometric analysis reveals that a decrease in costs per visit is associated with an increased number of visits from dentists and hygienists alike. It suggests that enhancing dental services could be achieved by increasing the number of atting dentists, hygienists, and resident dentists.

The study further calculates that for optimal production of dental services at minimum cost, a ratio of approximately 1.8 full-time equivalent FTE residents to every FTE atting dentist should be mntned.

Keywords: Cost function analysis, Production function analysis, Hospital dental programs, Dental service expansion

Introduction:

In an effort to provide hospitals with pertinent information on scaling up dental services while managing costs effectively, this paper delves into a comprehensive examination of cost and production functions in hospital dental care settings. Our research highlights the impact of hospital ownership public versus private and clinic size on the financial aspects and volume of dental services offered.

Among our sample of 23 hospitals across North America, it became apparent that private institutions demonstrated lower costs per visit compared to their public counterparts. This observation was accompanied by a greater number of pd atting dentist staff members, notably lower compensation for resident dentists, as well as an increased share of billings from Medicd and self-paying patients.

When these characteristics were analyzed through the lens of hospital ownership and size, the differences between private and public hospitals became more pronounced, particularly in the context of small clinics. For larger public and privately-owned dental facilities, however, there was a notable similarity in their key attributes, except for distinct billing patterns from Medicd and self-pay sources.

Our econometric analysis provided further insights into enhancing service delivery efficiency by correlating a decrease in costs per visit with an increase in visits from dentists and hygienists. The findings suggest that increasing the workforce of atting dentists, hygienists, and residents is pivotal to augmenting dental services while mntning cost-effectiveness.

In , our study offers recommations for achieving optimal production levels at minimum cost by adhering to a specific ratio between resident and atting dentist FTEs - approximately 1.8 full-time equivalent residents per FTE atting dentist. This analysis support hospital decision-makers in optimizing their dental care programs while managing financial resources efficiently.

References:

Wan, T.T., Vanostenberg, P.R., Salley, J.J., Singley, D.W., West, J.L. 1987. A Cost and Production Analysis of Hospital Dental Care Programs. Public Health Rep, 1025, 512-522.

that the abstract has been rewritten for a more formal tone typical in academic publications. The introduction and have also been crafted to provide context and summarize key findings succinctly. The content is structured as per standard research paper guidelines, including references formatted according to citation style norms in this case, APA.
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