Economics of scale and optimal size of hospitals (case study of shahid Rahnemoun hospital)

https://doi.org/10.53730/ijhs.v6nS7.13651

Authors

  • Seyed Valiallah Mirhoseyni Assistant Professor, Department of Economics, Payame Noor University, Tehran, Iran
  • Ebrahim Bahraminia Assistant Professor, Department of Economics, Payame Noor University, Tehran, Iran
  • Mahdia Monsefi Master student, Department of Government Management, Payame Noor University, Tehran, Iran

Keywords:

Economies of scale, Shahid Rahnemoun Hospital, Second degree cost function, Optimal size

Abstract

Economies of scale are one of the important behavioral indicators of production units. In the presence of economies of scale, the scale curve is descending, which indicates a decrease in the average cost of production with an increase in production. Theoretically, the optimal size of a production unit is the volume of production at which the average cost is at its lowest. The issue of the need to pay attention to economies of scale and optimal allocation of resources on the one hand and the role and position of hospitals in providing medical services on the other hand and the high share of treatment costs in public spending in Iran, compared to the world average, The motivation was to evaluate the efficiency conditions in production and determine the optimal size of the hospital. In this study, in order to determine the optimal size of Shahid Rahnemoun Hospital in Yazd according to the number of beds, the cost quadratic function of the hospital translog was estimated based on production factors using the quadratic cost function method. The study period is 1390-1398, which uses Eviews econometric software. 

Downloads

Download data is not yet available.

References

A. Simarmata, DjaMES ter (2012), “Appropriate Wage to Economies of Scale for Growth: An Exploratory Study on New Paradigm for Development” pp.1-30.

Dashti, Q, Sharfa, S(1388). Economic analysis of the optimal scale and size of a poultry farming unit Laying of Tehran province. Journal of Agricultural Economics and Development. 17(68): 1-19. ]Persian[

Debertin. D. Economics of agricultural production. (1376). Translation: Mohammad Gholi Musa Nejad and Reza Najarzadeh, Institute Publications Economic Research of Tarbiat Modares University. ]Persian [

Emadzadeh, M., Azarbayjani, K., and Zamanian, G (1390) E. conomies of scale: An analysis of the situation of the smelting company Isfahan Iron. Journal of Economic Research. (59): 95-116. ]Persian]

Henderson, J. And Richard, k. (1386).Theory of Microeconomics, translated by Morteza Gharabaghian and Jamshid Pajhvyan. ]Persian [

Isahanian. P (1397). Prevalence of burnout of nurses in Iranian hospitals: a systematic review study and Meta-analysis. Journal of Health. 10(2): 240-250. ]Persian [

Malkan, J. (1390). NInvestigating the effects of concentration ratio and economies of scale on profitability in Iran's industrial sector Quarterly Journal of Economic Research Trends. 19(58): 99-125 . ]Persian [

Mosadeghrad, A. M., Esfahani, P., &Nikafshar, M. (2017). Hospitals’efficiency in Iran: A systematic review and meta-analysis of two decades of research.

Nofersti., M. (1378). Unified and cohesive root in econometrics". Mopsa Rasa Cultural Services ]Persian [

Martín, J, Román, Concepción, Voltes-Dorta, Augusto, (2011), "Scale economies and marginal costs in Spanish airports", Transportation Research Part E, 47,238-248, 2011.

Machado, Mauricio Marins, Conceição Sampaio de Sousa, Hewings, Geoffrey, (2016), “Economies of scale and technological progress in electric power production: The case of Brazilian utilities”, Energy Economics, 59, 290-299.

Rezapour A., Turani Sogand, Hakimeh Mania(1389). Serial analysis of the final service centers of the training center- Alpha therapy of Qazvin University of Medical Sciences. Health management. 13(41): 21-23. ]Persian [

Shawalpou.S, Kaviani. A(1397). The effect of oil price fluctuations on wind power capacity in developing countries the role of technical learning and economies of scale. Iranian Journal of Energy Emphasis on Economics. 7(26): 25-50. ]Persian[

Shehiki Tash, M, Nasiri, A. (1390). Concentration, severity of barriers to entry and economies of scale in the Iranian water cooler industry and cost Welfare resulting from an effective monopoly structure. Quarterly Journal Welfare resulting from an effective monopoly structure. Quarterly Journal of Quantitative Existing Economic Studies. 8(1): 7. ]Persian[

Published

15-11-2022

How to Cite

Mirhoseyni, S. V., Bahraminia, E., & Monsefi, M. (2022). Economics of scale and optimal size of hospitals (case study of shahid Rahnemoun hospital). International Journal of Health Sciences, 6(S7), 6674–6687. https://doi.org/10.53730/ijhs.v6nS7.13651

Issue

Section

Peer Review Articles