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Managing Technical Efficiency of Public and Private Hospitals in Vietnam: Do Market-Oriented Policies Matter?

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  • Hideaki Kitaki

Abstract

This study examined how ownership and the degree of competition in the market were related to pure technical efficiency, using micro-level hospital data from six regions in Vietnam that were collected by an original survey. According to the results, the provincial hospitals have significantly higher efficiency than the district hospitals, while the private hospitals have significantly lower efficiency than the district hospitals. Moreover, the number of competing hospitals has a statistically significant negative correlation with the efficiency of the hospitals, and so does the number of competing private hospitals. On the other hand, the degree of concentration in the market has no significant correlation with efficiency. Those results may imply that competition raises problems with resource allocation among the hospitals in Vietnam.

Suggested Citation

  • Hideaki Kitaki, 2018. "Managing Technical Efficiency of Public and Private Hospitals in Vietnam: Do Market-Oriented Policies Matter?," Working Papers 163, JICA Research Institute.
    • Handle: RePEc:jic:wpaper:163
    DOI: 10.18884/00000853
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    References listed on IDEAS

    as
    1. Pinar Guven Uslu & Thuy Pham Linh, 2008. "Effects of Changes in Public Policy on Efficiency and Productivity of General Hospitals in Vietnam," Working Paper series, University of East Anglia, Centre for Competition Policy (CCP) 2008-30, Centre for Competition Policy, University of East Anglia, Norwich, UK..
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    5. Samuel S. Lieberman & Adam Wagstaff, 2009. "Health Financing and Delivery in Vietnam : Looking Forward," World Bank Publications - Books, The World Bank Group, number 2594, December.
    6. Chirikos, Thomas N. & Sear, Alan M., 1994. "Technical efficiency and the competitive behavior of hospitals," Socio-Economic Planning Sciences, Elsevier, vol. 28(4), pages 219-227, December.
    7. Howard Oxley, 2009. "Policies for Healthy Ageing: An Overview," OECD Health Working Papers 42, OECD Publishing.
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    Keywords

    technical efficiency; ownership; competition; DEA; bootstrap method;
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