Technical efficiency and corporate structure of Italian Private Hospitals. evidence from a one-step stochastic frontier analysis

ABSTRACT

This paper aims to identify the relationship between the output-oriented technical efficiency of Italian private hospitals and their ownership structure. Using the one-step Stochastic Frontier Analysis technique, we explain technical efficiency throughout a set of variables capturing the firm’s shareholder activity, ownership concentration, and managerial ownership. Results suggest that (1) technical efficiency is positively affected by managerial ownership, and (2) private hospitals are more efficient when ownership concentration is low.

KEYWORDS:

• Technical efficiency
• private health system
• ownership
• stochastic frontier

JEL CLASSIFICATION:

• D24
• L25
• I10

Disclosure statement

No potential conflict of interest was reported by the authors.

Notes

¹ Regions in the Centre-South are Sicily, Sardinia, Calabria, Apulia, Basilicata, Campania, Molise, and Abruzzo.