Professor Alan Maynard OBE reviews the validity of the idea that teaching hospitals have higher running costs
Traditionally, it has been argued that university teaching hospitals are more costly to operate. The primary argument to support this assertion is that they have a more complex case-mix.
Is this argument tenable, or is it a case of special interests defending their inefficiency?
Economics teaches us that larger units may have lower costs due to economies of scale and economies of scope. Why are these hospitals exceptions?