Estimate of production function in selected public hospitals of Isfahan University of Medical Sciences

Using economic principles and after that evaluating economical operation of hospitals cause the correction of procedures and continuation of activities and provide economic managing of hospital’s industry. The aim of this study was estimation production function in selected public hospitals of Isfahan University of Medical Sciences to assessment economical behavior of these hospitals in use of resources. This study was a kind of application studies that perform in descriptive-analytic manner in 2011. In this study bilateral logarithmic Cab-Douglas production function used to assessment economical behavior of hospitals. Research society was 5 selected military hospitals of Isfahan University of Medical Sciences. Data collected in form of Panel (Composition of cross-sectional and time series) for a 6 years period by survey method. Finally EVIEWS 5 econometrical software used for estimation the model. study findings showed that active beds (0/91)، nurse (0/11)، physician (0/01) and other personnel (0/008) inputs respectively have greater impact on production (number of Inpatient admission) of hospitals. The Coefficient of all inputs -except hospital beds- were significant (P<0. 05). All of inputs were in economic area. Amount of appointment coefficient were in excellent range (R2=0. 98). Summations of coefficients were more than 1 that shows increasing return to scale. the findings show great important of bed in rise of production (number of Inpatient admission). Thus the productivity of beds is high in hospitals and the greater role for production of hospital (number of inpatient discharge). Also we can say use of current hospitals capacity and investment in increasing production inputs can be an effective solution rather than building new hospitals because of increasing return to scale.