Economies of scale in the production of public health services: an analysis of local health districts in Florida
Objectives. We examined the existence and the extent of scale and scope economies in the
delivery of public health services. We also tested the strength of agency, population, and
community characteristics that moderate scale and scope economies. Methods. We
collected service count and cost data for all Florida local health districts for 2008 and 2010,
complemented with data on agency, population, and community characteristics. Using
translog cost functions, we built models of operating efficiencies for 5 core public health …
delivery of public health services. We also tested the strength of agency, population, and
community characteristics that moderate scale and scope economies. Methods. We
collected service count and cost data for all Florida local health districts for 2008 and 2010,
complemented with data on agency, population, and community characteristics. Using
translog cost functions, we built models of operating efficiencies for 5 core public health …
Objectives. We examined the existence and the extent of scale and scope economies in the delivery of public health services. We also tested the strength of agency, population, and community characteristics that moderate scale and scope economies.
Methods. We collected service count and cost data for all Florida local health districts for 2008 and 2010, complemented with data on agency, population, and community characteristics. Using translog cost functions, we built models of operating efficiencies for 5 core public health activities: communicable disease surveillance, chronic disease prevention, food hygiene, on-site sewage treatment, and vital records.
Results. Economies of scale were found in most activities, with cost per unit decreasing as volume increased. The models did not, however, identify meaningful economies of scope.
Conclusions. Consolidation or regionalization might lower cost per unit for select public health activities. This could free up resources for use in other areas, further improving the public’s health.
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