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Technical efficiency of selected hospitals in Eastern Ethiopia

Author

Listed:
  • Murad Ali

    (Haramaya University, College of Business and Economics)

  • Megersa Debela

    (Haramaya University, College of Business and Economics)

  • Tewfik Bamud

    (Hawasa University, College of Business and Economics)

Abstract

This study examines the relative technical efficiency of 12 hospitals in Eastern Ethiopia. Using six-year-round panel data for the period between 2007/08 and 2012/13, this study examines the technical efficiency, total factor productivity, and determinants of the technical inefficiency of hospitals. Data envelopment analysis (DEA) and DEA- based Malmquist productivity index used to estimate relative technical efficiency, scale efficiency, and total factor productivity index of hospitals. Tobit model used to examine the determinants of the technical inefficiency of hospitals. The DEA Variable Returns to Scale (VRS) estimate indicated that 6 (50%), 5 (42%), 3 (25%), 3 (25%), 4 (33%), and 3 (25%) of the hospitals were technically inefficient while 9 (75%), 9 (75%), 7 (58%), 7 (58%), 7 (58%) and 8 (67%) of hospitals were scale inefficient between 2007/08 and 2012/13, respectively. On average, Malmquist Total Factor Productivity (MTFP) of the hospitals decreased by 3.6% over the panel period. The Tobit model shows that teaching hospital is less efficiency than other hospitals. The Tobit regression model further shows that medical doctor to total staff ratio, the proportion of outpatient visit to inpatient days, and the proportion of inpatients treated per medical doctor were negatively related with technical inefficiency of hospitals. Hence, policy interventions that help utilize excess capacity of hospitals, increase doctor to other staff ratio, and standardize number of inpatients treated per doctor would contribute to the improvement of the technical efficiency of hospitals.

Suggested Citation

  • Murad Ali & Megersa Debela & Tewfik Bamud, 2017. "Technical efficiency of selected hospitals in Eastern Ethiopia," Health Economics Review, Springer, vol. 7(1), pages 1-13, December.
    • Handle: RePEc:spr:hecrev:v:7:y:2017:i:1:d:10.1186_s13561-017-0161-7
    DOI: 10.1186/s13561-017-0161-7
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    References listed on IDEAS

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    1. World Bank, 2013. "The World Bank Annual Report 2013," World Bank Publications - Books, The World Bank Group, number 16091.
    2. Carlos Barros & António Gomes de Menezes & Nicolas Peypoch & Bernardin Solonandrasana & José Vieira, 2008. "An analysis of hospital efficiency and productivity growth using the Luenberger indicator," Health Care Management Science, Springer, vol. 11(4), pages 373-381, December.
    3. Getachew, Abebe, 2006. "Technical Efficiency of selected public Hospitals in Ethiopia," Ethiopian Journal of Economics, Ethiopian Economics Association, vol. 11(1), pages 122-122, April.
    4. Ouellette, Pierre & Vierstraete, Valerie, 2004. "Technological change and efficiency in the presence of quasi-fixed inputs: A DEA application to the hospital sector," European Journal of Operational Research, Elsevier, vol. 154(3), pages 755-763, May.
    5. R. D. Banker & A. Charnes & W. W. Cooper, 1984. "Some Models for Estimating Technical and Scale Inefficiencies in Data Envelopment Analysis," Management Science, INFORMS, vol. 30(9), pages 1078-1092, September.
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    Cited by:

    1. Saima Bashir & Muhammad Nasir & Katja Grasic & Marc Moulin & Shehzad Ali, 2022. "Association between efficiency and quality of care of public healthcare facilities: Evidence from Pakistan," International Journal of Health Planning and Management, Wiley Blackwell, vol. 37(4), pages 2240-2255, July.
    2. Marlène Guillon & Martine Audibert & Jacky Mathonnat, 2022. "Efficiency of district hospitals in Zimbabwe: Assessment, drivers and policy implications," International Journal of Health Planning and Management, Wiley Blackwell, vol. 37(1), pages 271-280, January.
    3. Habib Zare & Madjid Tavana & Abbas Mardani & Sepideh Masoudian & Mahyar Kamali Saraji, 2019. "A hybrid data envelopment analysis and game theory model for performance measurement in healthcare," Health Care Management Science, Springer, vol. 22(3), pages 475-488, September.
    4. Molem Christopher S. & Beri Parfait B. & Ntangsi Max M., 2017. "Determinants of the Inefficiency of Public Hospitals in Cameroon," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 7(6), pages 404-419, June.
    5. Youssef Er-Rays & Meriem M'dioud, 2024. "Assessment of Technical Efficiency in the Moroccan Public Hospital Network: Using the DEA Method," Papers 2402.14940, arXiv.org.

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