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The productive efficiency of Chinese hospitals

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  • Ng, Ying Chu
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    Abstract

    Since the implementation of health care reforms, much has been documented regarding the practices and behavior of hospitals or health profession in China. While these documentations pointed to various problems arising from the reforms, a systematic analysis is rarely found. Based on five years' data, the present study aims at providing empirical evidence of inefficiency of hospitals in China. Using the data envelopment analysis, the sources of inefficiency were examined. Echoing the unnecessary care, over-prescription of drugs and the adoption of high-tech treatments since the implementation of health care reforms, the sampled hospitals were found quite inefficient and pure technical inefficiency played a dominant role in driving the inefficiency of hospitals. Combining the panel nature of the data and the Malmquist Index computation, hospitals had experienced productivity growth between 2004 and 2008. Mirroring the behavior of hospitals, technological progress was the underlying force for the growth and the deterioration in efficiency change was found. The results summarized by region revealed that the stage of economic development and the efficiency performance of hospital did not necessarily go hand in hand.

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    Bibliographic Info

    Article provided by Elsevier in its journal China Economic Review.

    Volume (Year): 22 (2011)
    Issue (Month): 3 (September)
    Pages: 428-439

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    Handle: RePEc:eee:chieco:v:22:y:2011:i:3:p:428-439

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    Web page: http://www.elsevier.com/locate/chieco

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    Keywords: Productive efficiency Data envelopment analysis Malmquist index Hospitals China;

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    Cited by:
    1. Antonio José Orozco Gallo, 2014. "Una aproximación regional a la eficiencia y productividad de los hospitales públicos colombianos," DOCUMENTOS DE TRABAJO SOBRE ECONOMÍA REGIONAL, BANCO DE LA REPÚBLICA - ECONOMÍA REGIONAL 011548, BANCO DE LA REPÚBLICA - ECONOMÍA REGIONAL.
    2. Xiao Xian HUANG & Aurore PELISSIER & Jacky MATHONNAT & Martine AUDIBERT & Anning MA, 2011. "Health Insurance Reform and Efficiency of Township Hospitals in Rural China: An Analysis from Survey Data," Working Papers 201111, CERDI.
    3. Cláudia Araújo & Carlos Barros & Peter Wanke, 2014. "Efficiency determinants and capacity issues in Brazilian for-profit hospitals," Health Care Management Science, Springer, Springer, vol. 17(2), pages 126-138, June.
    4. You, Jing, 2013. "The role of microcredit in older children’s nutrition: Quasi-experimental evidence from rural China," Food Policy, Elsevier, Elsevier, vol. 43(C), pages 167-179.
    5. Minghong Tan, 2014. "The Transition of Farmland Production Functions in Metropolitan Areas in China," Sustainability, MDPI, Open Access Journal, vol. 6(7), pages 4028-4041, June.

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