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Evaluating the resource allocation efficiency of the healthcare system in Taiwan

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  • Chia-Hsuan Wu
  • Ching-Cheng Chang
  • Ken N. Kuo

Abstract

In this study, we introduced the concept of the integrated healthcare system into budget allocation decisions and analysed the potential improvement in healthcare performance by reallocating the budget among the preventive care, medical care and long-term care services. We have applied an extended version of the Data Envelopment Analysis (DEA) approach to evaluate the efficiency and performance of the healthcare system in 23 counties and cities in Taiwan for the year 2003. The results indicated that the efficiency in each city and county's healthcare system varied with local conditions. With reallocation of their healthcare budgets, we observed a gain in efficiency in healthcare of the cities and counties studied. The general recommendations for budget reallocations are along the lines of increasing the amount invested in preventive and long-term care while reducing expenditures on medical care.

Suggested Citation

  • Chia-Hsuan Wu & Ching-Cheng Chang & Ken N. Kuo, 2008. "Evaluating the resource allocation efficiency of the healthcare system in Taiwan," International Journal of Public Policy, Inderscience Enterprises Ltd, vol. 3(5/6), pages 403-418.
    • Handle: RePEc:ids:ijpubp:v:3:y:2008:i:5/6:p:403-418
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    Cited by:

    1. Zhou, Xiaoyang & Xu, Zhongwen & Chai, Jian & Yao, Liming & Wang, Shouyang & Lev, Benjamin, 2019. "Efficiency evaluation for banking systems under uncertainty: A multi-period three-stage DEA model," Omega, Elsevier, vol. 85(C), pages 68-82.
    2. Heller, Lauren R., 2013. "Do slums matter? Location and early childhood preventive care choices among urban residents of Bangladesh," Social Science & Medicine, Elsevier, vol. 94(C), pages 43-55.
    3. YongChan Kim & Min Jae Park & Erdal Atukeren, 2020. "Healthcare and Welfare Policy Efficiency in 34 Developing Countries in Asia," IJERPH, MDPI, vol. 17(13), pages 1-21, June.

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