The paper estimates cost efficiency of 99 general hospitals in the Czech Republic during 2001–2008 using the Stochastic Frontier Analysis. We control for determinants of the inefficiency and found that bigger, not-for-profit and teaching hospitals tend to be less efficient, as well as hospitals in municipalities with a larger share of the elderly.
Small hospitals, hospitals in bigger municipalities and hospitals in regions where hospital competition is tense tend to be more efficient.