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Hospitals have been relatively neglected in the debate over system development in low-income countries, perhaps of the recognition that those services most in improving population health in developing are better delivered in a different setting. However, the efficiency of its hospital sector is vital to the overall effciency of any health system, for several reasons: the hospital sector's high resource consumption implies high gains from increased efficiency; functional problems at the hospital level can create problems lower down the system; the functioning of hospitals has become symbolic of the functioning of the overall system: hospital efficiency is important for public confidence.
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Hanson et al. (2001) studied this question.
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