A Model for Evaluating the Efficiency of Teaching Hospitals

Abstract

Purpose. To construct a model for evaluating the efficiency of public and private general teaching hospitals in Taiwan. Methods. An Input-oriented Data Envelopment Analysis model, a cross-sectional study design based on secondary data analysis, was constructed to evaluate the efficiency of 101 hospitals in the years 1997, 2000 and 2003. Factors which influenced inefficiency of hospitals were examined using regression analysis. The sources of data came from the Department of Health database on Basic Hospital Accreditation Data and the Survey of the Status and Service Quantity of Public and Private Hospitals. Results. Private hospitals were more efficient than public hospitals; medical centers performed better than regional hospitals and district hospitals. Juridical private hospitals had the highest average efficiency score, while hospitals managed by the Department of Health had the lowest efficiency scores. Regression analysis revealed that a high occupancy rate and the quantity of total quality management programs were indicative of a well-run hospital. Five factors had a significant negative influence on hospital efficiency, namely, hospital's ownership, department, average length of stay, persons who attended teaching and training programs, and degree of competition. Conclusions. Improving efficiency of hospitals is a continuing task requiring long-term observation and analysis. Administrators should focus on management of quality control, controlling costs, justifying scale of departments and increasing the occupancy rate of hospitals to improve efficiency.