Abstract

This study aims to determine and analyze the level of technical cost efficiency, technical systems and improvement strategies that need to be done for inefficient areas in 30 districts / cities in East Java Province. This study uses secondary data from 30 districts / cities in East Java Province. The variables used include APBD expenditure variables according to health function as input, variable total of puskesmas, posyandu, puskesmas medical personnel, and government hospitals as intermediate outputs, as well as life expectancy, Maternal Mortality Rate (MMR), Infant Mortality Rate (IMR), and Morbidity Rate variables as outcomes. The research method uses Data Envelopment Analysis (DEA) with the assumption of Variable Return to Scale (VRS) and input-oriented. The results obtained on average technical efficiency costs during 2012-2016 were only 26.67%, while for technical efficiency the system reached 53.34% which was already efficient so that there were indications of waste in the allocation of health spending and an improvement strategy based on potential improvement for the regions was needed. which is still inefficient so that the proportion of inputs and outputs can be efficient according to the needs in each of these regions.

Highlights

  • Investment in human resources has an important role for the welfare of a country

  • The value of technical efficiency can be said to be efficient if the value is 100% while the value is less than 100% the coefficient is inefficient

  • The calculation includes the level of technical efficiency of the costs of health expenditure and the technical efficiency of the system of health services

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Summary

Introduction

Investment in human resources has an important role for the welfare of a country. According to Hardiyansyah (2011), health is one of the main assets for a country to achieve prosperity in society and quality human resources. According to Law Number 36 Year 2009, health is a healthy state, both physically mentally, spiritually, and socially that allows everyone to live productively socially and economically. Based on the goals contained in the SDGs, the purpose of the third SDGs explains that the importance of health and welfare for a country. Health is one indicator of the success of human development in the country of Indonesia. According to Asandului et al,(2014) efforts from the health sector in terms of human resource development play an important role in labor productivity

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