Regional Quantity, Productivity and Efficiency Measures of the Swiss Health Care System

Summary In Switzerland, there are substantial cantonal differences in per capita cost of the mandatory health care system. The present paper breaks these differences down into price and quantity effects revealing both, a large quantity and a somewhat smaller price variance across cantons. As a statistical fact, a positive correlation of price and quantity index results. Dividing the inferred quantity output index by a corresponding input index yields a measure of total factor productivity. While the canton of Zurich exhibits the highest productivity, the measures in Geneva, Neuchâtel, Berne and Vaud are far below average. Finally, a data envelopment analysis of hospital services shows little evidence for variable returns to scale implying that low productivities are, for the most part, due to pure technological slacks.