Abstract

Efficiency of the Ethiopian Health Extension Program: An Application of Data Envelopment Analysis

Highlights

  • Evaluating the performance of healthcare systems has become a top agenda item for policy makers and practitioners (Eunice, 2013)

  • The results indicated that 27 percent and 53 percent of the European Union (EU)-15 member states were efficient based on constant returns to scale (CRS) and variable returns to scale (VRS) VRS Data Envelopment Analysis (DEA) models, respectively, while 38 percent and 60 percent of the EU-13 member states were found to be technically efficient based on CRS and VRS DEA models, respectively

  • Evaluation of the efficiency of health posts where the Ethiopian health extension program is functioning in order to provide basic healthcare services to its rural population, is important for redesigning or reformulating appropriate policies, strategies, and programs to ensure universal healthcare coverage and achieve health-related national goals

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Summary

Introduction

Evaluating the performance of healthcare systems has become a top agenda item for policy makers and practitioners (Eunice, 2013). Prior to the findings of this current study, evidence on the relative efficiency of health posts in major regions of Ethiopia at a national level were limited To address this important gap, the aims of this study are twofold; namely, (i) to evaluate the relative technical efficiency and productivity of the Ethiopian rural health extension program, and (ii) to identify factors that explain technical inefficiency variations across health posts. This study could contribute to the limited Data Envelopment Analysis (DEA) literature in providing empirical evidence to policy makers with a wealth of information for driving improvements, to strategically direct resources to the areas that were previously underserved, and provide a platform for regions to share lessons and best practices to better serve the diverse health needs of the large rural population, and, save millions of lives.

Review of related literature
Data and Methods
Selection of inputs and outputs
Description of explanatory variables
Measuring scale efficiency
Malmquist Productivity Index
Identifying sources of technical inefficiency
Using the Tobit regression in the second stage
Estimates of technical efficiency
Estimates of scale efficiency
Improving universal healthcare services coverage
Efficiency change
Scale efficiency change
Technological and total factor productivity changes
Sources of inter-health posts technical inefficiency
Conclusion
Findings
Availability of data and materials

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