Economical operating and technical efficiency of provincial hospitals in Zhejiang: based on Stochastic frontier analysis

Abstract

Objective To analyze the economical operation and technical efficiency of Zhejiang provincial hospitals, and give references for deepening public hospitals reform. Methods We compiled data from 17 provincial public hospitals from 2013 to 2017 in Zhejiang, then used descriptive analysis to study hospitals′ operating performance, and used stochastic frontier analysis(SFA)to analyze hospitals′ technical efficiency. Results From 2013 to 2017, the 17 provincial hospitals′ annual growth rate of outpatients and discharges were 5.2% and 9.5%, the number of outpatients and discharges at the general hospitals were 1.8 times and 2.5 times of those in specialized hospitals respectively.In these hospitals, service efficiency had been improved, and the income structure had become more reasonable.However, internal and external factors of the hospitals lowered technical inefficiency in their economic operation. Conclusions The economic operation mechanism of provincial hospitals should be further strengthened, and their external environment be improved as well.Only in this can the hospitals achieve their operational goal of doing the right thing and in the right way . Key words: Stochastic frontier analysis; Provincial hospitals; Economical operating; Technical efficiency; Zhejiang province