Estimation of the Production Function of Ahvaz University of Medical Sciences Hospitals during 2006-2014

Hospital as an economic entity, should utilize economic analysis for the optimal use of resources and production facilities. The aim of this study was to estimate the production function of Ahvaz University of Medical Sciences during the period 2006-2014.
This study was a descriptive cross-sectional analysis. The Data were collected during a period of 9 years in 7 hospitals in Ahvaz. The dependent variable in this study was the number of hospital admissions as the production level and the explanatory variables, including nurses, physicians, staffs, and the number of beds. To determine and specify the form of subordinated Cobb - Douglas production function was used. Data analysis and econometric model was estimated using STATA11.
Research findings showed 0.28 elasticity for the physicians, elasticity for nurses, number of beds , outpatient reception and other staffs were 0.10, 0.95, 0.30 and -0.11 respectively. In other words, the most production in these hospitals was dependent on the number of beds. It was an economic activity that consumed a lot of capital. The sum of the coefficients of the production function was 0.88 and the return to the scale was downward.
The findings of this study showed that hospital beds have great importance in increasing production. Therefore, the rate of active bed occupancy in these hospitals is high and has the largest role in the production of hospitals or the number of inpatient discharge.