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Technical efficiency of selected hospitals in Eastern Ethiopia
Murad Ali1, Megersa Debela2, Tewfik Bamud3
1Department of Economics, Haramaya University, College of Business and Economics, Dire Dawa, Ethiopia.
Health Economics Review
|June 22, 2017
Summary
Hospital technical efficiency in Eastern Ethiopia declined, with many hospitals being technically and scale inefficient. Key factors influencing inefficiency include staff ratios and patient load, suggesting targeted policy interventions are needed.
Area of Science:
- Health Services Research
- Health Economics
- Hospital Management
Background:
- Assessing hospital efficiency is crucial for resource allocation in healthcare systems.
- Ethiopia's healthcare sector faces challenges in optimizing hospital operational performance.
- Understanding technical efficiency drivers can inform policy for improved healthcare delivery.
Purpose of the Study:
- To evaluate the technical efficiency, total factor productivity, and determinants of technical inefficiency among hospitals in Eastern Ethiopia.
- To analyze trends in hospital productivity over a six-year period.
- To identify specific factors contributing to hospital inefficiency.
Main Methods:
- Panel data analysis from 2007/08 to 2012/13 for 12 hospitals.
- Data Envelopment Analysis (DEA) to measure technical and scale efficiency.
- DEA-based Malmquist Productivity Index to assess Total Factor Productivity (TFP) changes.
- Tobit regression model to identify determinants of technical inefficiency.
Main Results:
- A significant proportion of hospitals exhibited technical and scale inefficiency throughout the study period.
- Average Malmquist Total Factor Productivity (MTFP) decreased by 3.6% annually.
- Teaching hospitals were found to be less efficient than non-teaching hospitals.
- Higher medical doctor to total staff ratios and appropriate patient loads per doctor were associated with lower inefficiency.
Conclusions:
- Hospital technical efficiency in Eastern Ethiopia requires significant improvement.
- Policy interventions should focus on optimizing resource utilization, staffing ratios, and patient management.
- Addressing identified inefficiencies can lead to enhanced healthcare service delivery and productivity.
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