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Directional distance function for FDH technologies with an application to Tunisian public hospitals

Author

Listed:
  • Arfa Chokri

    (INTES, University of Carthage, Tunisia)

  • Hervé Leleu

    (LEM-CNRS (UMR 8179), IÉSEG School of Management)

  • Ben Romdhane Habiba

    (INSP, Faculty of Medicine, Tunisia)

Abstract

Tunisian’s public hospitals have been often deemed inefficiency, yet unfortunately no empirical study has demonstrated the breadth and/or depth of this inefficiency. To address this issue, we develop a non parametric methodology to measure efficiency at patient level for five cardiology wards. This methodology is based on the estimation of the input directional distance function, using a recent developed linear form of free disposal hull model. Results show that, on average, each cardiology ward could save more than 50% of each input; whereas at the patient level, illness severity and patients’ profiles were associated with inefficiency. At the ward level, practice patterns and wards missions explain disparities on inefficiency. By defining sub-specializations or standard procedures for cardiology wards, we demonstrate where the public hospitals can save resources when treating these patients.

Suggested Citation

  • Arfa Chokri & Hervé Leleu & Ben Romdhane Habiba, 2008. "Directional distance function for FDH technologies with an application to Tunisian public hospitals," Working Papers 2008-ECO-03, IESEG School of Management.
    • Handle: RePEc:ies:wpaper:e200803
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    References listed on IDEAS

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