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Testing for Variation in Technical Efficiency of Hospitals in Ireland

  • Brenda Gannon

    (The Economic and Social Research Institute, Dublin)

Funding in Irish hospitals is partially based on case mix, whereby resources are redistributed annually to hospitals with greater efficiency. Accurate measurement of efficiency is essential, so in this paper, we use Data Envelopment Analysis and Stochastic Frontier Analysis to measure technical efficiency of acute public hospitals in Ireland between 1995 and 2000. The results provide estimates of average technical efficiency in the hospital sector in Ireland for the first time, and highlight the variation in technical efficiency levels across hospitals. Internationally, the results contribute to the growing literature on the comparison of DEA and SFA methodologies.

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Article provided by Economic and Social Studies in its journal Economic and Social Review.

Volume (Year): 36 (2005)
Issue (Month): 3 ()
Pages: 273-294

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Handle: RePEc:eso:journl:v:36:y:2005:i:3:p:273-294
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  7. Donal. G. McKillop & J. Colin Glass & Christine A. Kerr & Gillian McCallion, 1999. "Efficiency in Northern Ireland Hospitals - A Non-parametric Analysis," The Economic and Social Review, Economic and Social Studies, vol. 30(2), pages 175-196.
  8. Robert Rosenman & Kris Siddharthan & Melissa Ahern, 1997. "Output Efficiency of Health Maintenance Organizations in Florida," Health Economics, John Wiley & Sons, Ltd., vol. 6(3), pages 295-302.
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  10. Coelli, Tim & Perelman, Sergio, 1999. "A comparison of parametric and non-parametric distance functions: With application to European railways," European Journal of Operational Research, Elsevier, vol. 117(2), pages 326-339, September.
  11. Gannon, Brenda, 2004. "Technical Efficiency of Hospitals in Ireland," Papers HRBWP18, Economic and Social Research Institute (ESRI).
  12. Charnes, A. & Cooper, W. W. & Rhodes, E., 1978. "Measuring the efficiency of decision making units," European Journal of Operational Research, Elsevier, vol. 2(6), pages 429-444, November.
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  14. David Parkin & Bruce Hollingsworth, 1997. "Measuring production efficiency of acute hospitals in Scotland, 1991-94: validity issues in data envelopment analysis," Applied Economics, Taylor & Francis Journals, vol. 29(11), pages 1425-1433.
  15. 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.
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