Measuring Public Hospitals Performance in Health Resource Poor Environment: A Data Envelopment Analysis Approach

Abstract

Performance metrics of public hospitals in health resource poor environment should be considered crucial in the process of functional evaluation of the health sector. These metrics assume important dimensions in term of implication for service extension, stewardship and justifications of public resource expenditure. The present study utilised data envelopment analysis (DEA) methodology to shed light on the operational data of 32 government-owned hospitals in order to identify the magnitude of (in)efficiency in the hospital system. Results of DEA models indicate that 66.7% of these public hospitals are technically inefficient with overall average efficiency score of 0.73. In addition, 22 hospitals were found to be scale inefficient; 57.6% of these facilities being under increasing returns to scale regime. The study suggests a resource re-allocation strategy as well as managerial and policy initiatives focused on reducing costs of care.