IDEAS home Printed from https://ideas.repec.org/a/spr/hecrev/v7y2017i1d10.1186_s13561-017-0161-7.html
   My bibliography  Save this article

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
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1186/s13561-017-0161-7
    File Function: Abstract
    Download Restriction: no
    File URL: https://libkey.io/10.1186/s13561-017-0161-7?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. World Bank, 2013. "The World Bank Annual Report 2013," World Bank Publications - Books, The World Bank Group, number 16091, December.
    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.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    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.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Marwa Hasni & Safa Bhar Layeb & Najla Omrane Aissaoui & Aymen Mannai, 2022. "Hybrid model for a cross‐department efficiency evaluation in healthcare systems," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(5), pages 1311-1329, July.
    2. Kerstens, Kristiaan & Van de Woestyne, Ignace, 2014. "Comparing Malmquist and Hicks–Moorsteen productivity indices: Exploring the impact of unbalanced vs. balanced panel data," European Journal of Operational Research, Elsevier, vol. 233(3), pages 749-758.
    3. Ouellette, Pierre & Quesnel, Jean-Patrice & Vigeant, Stéphane, 2012. "Measuring returns to scale in DEA models when the firm is regulated," European Journal of Operational Research, Elsevier, vol. 220(2), pages 571-576.
    4. Venkatesh, Anand & Kushwaha, Shivam, 2018. "Short and long-run cost efficiency in Indian public bus companies using Data Envelopment Analysis," Socio-Economic Planning Sciences, Elsevier, vol. 61(C), pages 29-36.
    5. Guilhermina Rego & Rui Nunes & José Costa, 2010. "The challenge of corporatisation: the experience of Portuguese public hospitals," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 11(4), pages 367-381, August.
    6. Tavana, Madjid & Ebrahimnejad, Ali & Santos-Arteaga, Francisco J. & Mansourzadeh, Seyed Mehdi & Matin, Reza Kazemi, 2018. "A hybrid DEA-MOLP model for public school assessment and closure decision in the City of Philadelphia," Socio-Economic Planning Sciences, Elsevier, vol. 61(C), pages 70-89.
    7. O'Neill, Liam & Rauner, Marion & Heidenberger, Kurt & Kraus, Markus, 2008. "A cross-national comparison and taxonomy of DEA-based hospital efficiency studies," Socio-Economic Planning Sciences, Elsevier, vol. 42(3), pages 158-189, September.
    8. Yang Li & An-Chi Liu & Shu-Mei Wang & Yiting Zhan & Jingran Chen & Hsiao-Fen Hsiao, 2022. "A Study of Total-Factor Energy Efficiency for Regional Sustainable Development in China: An Application of Bootstrapped DEA and Clustering Approach," Energies, MDPI, vol. 15(9), pages 1-13, April.
    9. Li, Yongjun & Wang, Lizheng & Li, Feng, 2021. "A data-driven prediction approach for sports team performance and its application to National Basketball Association," Omega, Elsevier, vol. 98(C).
    10. Antônio Artur de Souza & Ewerton Alex Avelar & Alisson Maciel de Faria Marques & Douglas Rafael Moreira & Osmar Ferreira da Silva & Daniele Oliveira Xavier, 2014. "Performance Analysis Of Brazilian Public And Philanthropic Hospitals (Análise Do Desempenho De Hospitais Públicos E Filantrópicos Brasileiros)," Portuguese Journal of Management Studies, ISEG, Universidade de Lisboa, vol. 0(2), pages 75-94.
    11. Greta Falavigna & Roberto Ippoliti & Alessandro Manello, 2013. "Hospital organization and performance: a directional distance function approach," Health Care Management Science, Springer, vol. 16(2), pages 139-151, June.
    12. Chia-Nan Wang & Hector Tibo & Van Thanh Nguyen & Duy Hung Duong, 2020. "Effects of the Performance-Based Research Fund and Other Factors on the Efficiency of New Zealand Universities: A Malmquist Productivity Approach," Sustainability, MDPI, vol. 12(15), pages 1-18, July.
    13. Sotirios Dimitriadis & Athanasia Karakitsiou & Olga Mitsopoulou, 2013. "Applying QE-DEA in the evaluation of the Greek public sector: the case of the agencies for aliens and immigration of the Decentralized Administration of Macedonia and Thrace," International Journal of Decision Sciences, Risk and Management, Inderscience Enterprises Ltd, vol. 5(1), pages 88-100.
    14. Sharon Hadad & Yossi Hadad & Tzahit Simon-Tuval, 2013. "Determinants of healthcare system’s efficiency in OECD countries," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 14(2), pages 253-265, April.
    15. Sepideh Abolghasem & Mehdi Toloo & Santiago Amézquita, 2019. "Cross-efficiency evaluation in the presence of flexible measures with an application to healthcare systems," Health Care Management Science, Springer, vol. 22(3), pages 512-533, September.
    16. Hainan Guo & Yang Zhao & Tie Niu & Kwok-Leung Tsui, 2017. "Hong Kong Hospital Authority resource efficiency evaluation: Via a novel DEA-Malmquist model and Tobit regression model," PLOS ONE, Public Library of Science, vol. 12(9), pages 1-24, September.
    17. Lee, Boon L. & Worthington, Andrew C., 2014. "Technical efficiency of mainstream airlines and low-cost carriers: New evidence using bootstrap data envelopment analysis truncated regression," Journal of Air Transport Management, Elsevier, vol. 38(C), pages 15-20.
    18. Briec, Walter & Dumas, Audrey & Stenger, Agathe, 2013. "On the standard achievement and well-being indexes and their relation to the Hicks–Moorsteen productivity index," Economic Modelling, Elsevier, vol. 35(C), pages 900-909.
    19. Mustafa Jahangoshai Rezaee & Abuzar Karimdadi & Hamidreza Izadbakhsh, 2019. "Road map for progress and attractiveness of Iranian hospitals by integrating self-organizing map and context-dependent DEA," Health Care Management Science, Springer, vol. 22(3), pages 410-436, September.
    20. Sebastian Kohl & Jan Schoenfelder & Andreas Fügener & Jens O. Brunner, 2019. "The use of Data Envelopment Analysis (DEA) in healthcare with a focus on hospitals," Health Care Management Science, Springer, vol. 22(2), pages 245-286, June.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:hecrev:v:7:y:2017:i:1:d:10.1186_s13561-017-0161-7. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com/economics/journal/13561 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.