Note 3-120

(120) "Economic effects of regulatory reform in medical services, elderly care, nursing, etc.-Estimation for study concerning entry of incorporated companies, etc." (May 2003), Economic Effect Analysis Report No. 16, Cabinet Office. A study on the productivity of 41 private hospitals (mainly medical corporations) and 518 public hospitals by using probalistic frontier functions shows that private hospitals are 37.9% more productive than public hospitals (for probalistic frontier functions, see Attached Note 3.-5).