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Technical Efficiency in Public Hospitals in Kenya: A Two ¨CStage Data Envelopment Analysis

Author

Listed:
  • Francis Mwihia
  • James Machoki M¡¯ Imunya
  • Germano Mwabu
  • Urbanus Kioko
  • Benson Estambale

Abstract

The paper uses the DEA technique to estimate efficiency scores in Kenyan public hospitals and then applies the Tobit regression to study inter-hospital variation in the scores. The DEA analysis reveals that small hospitals are more efficient than large hospitals, with efficiency levels ranging from 74-91% in small DMUs and from 57-78% in large DMUs. Tobit regression analysis shows efficiency scores are negatively correlated with the hospital¡¯s distance from the manager¡¯s residence and from the capital city. Internal and external supervisions are suggested as mechanisms for increasing performance of hospitals.

Suggested Citation

  • Francis Mwihia & James Machoki M¡¯ Imunya & Germano Mwabu & Urbanus Kioko & Benson Estambale, 2018. "Technical Efficiency in Public Hospitals in Kenya: A Two ¨CStage Data Envelopment Analysis," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 10(6), pages 141-150, June.
    • Handle: RePEc:ibn:ijefaa:v:10:y:2018:i:6:p:141-150
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    References listed on IDEAS

    as
    1. Eyob Zere, 2000. "Hospital Efficiency in Sub-Saharan Africa: Evidence from South Africa," WIDER Working Paper Series wp-2000-187, World Institute for Development Economic Research (UNU-WIDER).
    2. Mills, A.J., 1991. "The cost of the district hospital : a case study from Malawi," Policy Research Working Paper Series 742, The World Bank.
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    More about this item

    Keywords

    hospitals; technical and scale efficiency; DEA; Tobit regression; hospital supervision; Kenya;
    All these keywords.

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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