Estimating hospital costs. A multiple-output analysis

J Health Econ. 1986 Jun;5(2):107-27. doi: 10.1016/0167-6296(86)90001-9.


This study explores a new approach to estimating the cost of inpatient and outpatient services provided by hospitals. Data from a nationwide survey of non-federal, short-term, U.S. hospitals are used to make cost estimates based on a multiple-output cost function. The results provide information on the structure of hospital costs, and include estimates of the marginal and average incremental cost of outpatient care. Because of the innovative specification of the cost function, the study is of interest for its methodology as well as empirical results.

Publication types

  • Research Support, U.S. Gov't, Non-P.H.S.

MeSH terms

  • Costs and Cost Analysis / methods*
  • Data Collection
  • Economics, Hospital*
  • Emergency Service, Hospital / economics
  • Hospitalization / economics
  • Models, Theoretical
  • Outpatient Clinics, Hospital / economics
  • Regression Analysis
  • United States