Abstract

Warning View the most recent version.

Archived Content

Information identified as archived is provided for reference, research or recordkeeping purposes. It is not subject to the Government of Canada Web Standards and has not been altered or updated since it was archived. Please "contact us" to request a format other than those available.

This paper constructs a direct output measure of the hospital sector in Canada. The volume index of the output of the hospital sector is estimated from aggregating the number of inpatient cases and outpatient cases using their cost share as weights. It also examines two potential sources of bias in this cost-weighted volume index: substitution bias and aggregation bias. The analysis reveals a large substitution bias in the volume index when inpatient treatment and outpatient treatment of the same medical disease/condition are aggregated using their respective unit costs as weights. The substitution bias essentially captures quality improvements associated with the shift away from inpatient treatment toward outpatient treatment. The volume index of the hospital sector output corrected for substitution bias increased 4.3% annually during the 2002-to-2010 period. Labour productivity based on the direct output measure is estimated to have increased 2.6% annually over the period.

Report a problem on this page

Is something not working? Is there information outdated? Can't find what you're looking for?

Please contact us and let us know how we can help you.

Privacy notice

Date modified: