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Data envelopment analysis of efficiency in hospital organisations

Author

Listed:
  • Antônio Artur De Souza
  • Douglas Rafael Moreira
  • Ewerton Alex Avelar
  • Alisson Maciel De Faria Marques
  • Amanda Lucchesi Lara

Abstract

Hospitals have been forced to change because of both users' pressure for higher quality services and regulatory agencies' pressure for better resources management. Notably, low-quality health services are directly derived from poor hospital management and causes substantial user dissatisfaction. Given this context, this paper reports on a performance evaluation of hospitals financed by the Brazilian Unified Health System (SUS). It analyses 20 hospitals (among public and voluntary hospitals) in seven states from 2008 to 2010. Focusing on the financial management, the analysis builds on a set of operational ratios (i.e., occupancy rate, average length of stay, and full time employees per bed) as inputs, and financial ratios (i.e., EBIT margin, EBITDA margin, return on assets, return on invested capital, and net margin) as outputs. The assessment framework confirms the hypotheses, and shows that financial management efficiency differs between public and voluntary hospitals.

Suggested Citation

  • Antônio Artur De Souza & Douglas Rafael Moreira & Ewerton Alex Avelar & Alisson Maciel De Faria Marques & Amanda Lucchesi Lara, 2014. "Data envelopment analysis of efficiency in hospital organisations," International Journal of Business Innovation and Research, Inderscience Enterprises Ltd, vol. 8(3), pages 316-332.
    • Handle: RePEc:ids:ijbire:v:8:y:2014:i:3:p:316-332
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    Citations

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    Cited by:

    1. Sebastian Kohl & Jan Schoenfelder & Andreas Fügener & Jens O. Brunner, 2019. "The use of Data Envelopment Analysis (DEA) in healthcare with a focus on hospitals," Health Care Management Science, Springer, vol. 22(2), pages 245-286, June.
    2. Agata Sielskas, 2021. "Determinants of hospital inefficiency. The case of Polish county hospitals," PLOS ONE, Public Library of Science, vol. 16(8), pages 1-23, August.
    3. Dana Jašková, 2021. "Efficiency of management processes in a private hospital," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 9(1), pages 436-446, September.
    4. Ghasemi, Abdolrasoul & Boroumand, Yasaman & Shirazi, Masoud, 2020. "How do governments perform in facing COVID-19?," MPRA Paper 99791, University Library of Munich, Germany, revised 20 Apr 2020.

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