The Economies of scale of Sawang Dandin Crown Prince Hospital of SakonNakhon

Abstract

The study about economies of scale of hospitals is another effective way to indicate aspects in which the hospital needs to be improved. Hence, this thesis is conducted to study   the economies of scale of Sawang Dandin Crown Prince Hospital, Sakon Nakhon to determine the increasing or decreasing trends of the hospital's manufacturing cost and use the data for the hospital's management in order to achieve the highest efficiency of the organization under the quality standard and the best services for the future clients. This study is conducted by compiling secondary data such as annually collected time series data, hospital's annually income and expense reports from 1998-2018, in a total of 21 years, and applying econometric tools for analyzing the relationship between variables in the model, and analyzing the statistical data by estimating with Least Square.

In conclusion, the study result of The Economies of Scale of Sawang Dandin Crown Prince Hospital Sakon Nakhon shows that the coefficient of yield of the hospital, which is the numbers of the client, is 1.112, which exceeds the maximum of 1; which means that in the past 21 years, the hospital has not been in the production that is economies of its scale. The study shows that the average manufacturing cost of the hospital is in rising. When the yield increased by 1 percent, the average manufacturing cost of the hospital will rise up to 1.112 percent. This result indicates the inability to efficiently administrate, operate and manage the hospital, and incapability of keeping the average manufacturing rate lower than the product increasing rate. Therefore, reducing the size of the production by reducing the size of the outpatient department by establishing a separate form of hospital may be in the form of a clinic which will reduce the average cost of inpatient and outpatient.