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Using Value Efficiency Analysis (VEA) to Measure Productivity Efficiency in Primary Health Care

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  • González, Eduardo
  • García, Vicente

Abstract

Measuring productive efficiency in health organizations requires using flexible methods like Data Envelopment Analysis (DEA) capable to account for the enormous complexity of health care activities. However, the empirical application of DEA is subject to serious limitations. A recurrent problem of DEA is its scant discriminating power when the number of dimensions is large and the sample is not. This paper explores the ability of Value Efficiency Analysis (VEA) to increase the discriminating power of DEA. The VEA model uses qualitative information to constraint the range of shadow prices allowed in the programs. Applying VEA to a sample of 61 health care centres in Asturias (Spain) we certified a notable improvement in the discriminating power of DEA. The number of efficient centres decreases from 19 to 13. The results also reveal an important scale problem in some centres. We also find some relationships between managerial efficiency and some contextual variables.

Suggested Citation

  • González, Eduardo & García, Vicente, 2006. "Using Value Efficiency Analysis (VEA) to Measure Productivity Efficiency in Primary Health Care," Efficiency Series Papers 2006/04, University of Oviedo, Department of Economics, Oviedo Efficiency Group (OEG).
    • Handle: RePEc:oeg:wpaper:2006/04
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