Assessing performance of Taiwan hospitals using data envelopment analysis: In view of ownership

Area of Science:

• Healthcare Management
• Health Economics
• Hospital Administration

Background:

• Rising healthcare awareness in Taiwan necessitates evaluating hospital operational efficiency.
• Hospital ownership (public vs. private) influences strategic goals and performance.
• Understanding efficiency drivers is crucial for targeted hospital improvement.

Purpose of the Study:

• To assess and compare the operational efficiency of public and private hospitals in Taiwan.
• To determine the impact of hospital ownership on efficiency metrics.
• To identify factors influencing hospital efficiency, including organizational and environmental aspects.

Main Methods:

• A two-stage analytical approach was employed for 182 Taiwanese hospitals.
• Data Envelopment Analysis (DEA) was used in the first stage to calculate efficiency scores.
• Tobit regression analysis was applied in the second stage to examine determinants of efficiency.

Main Results:

• Private hospitals were found to be significantly more efficient than public hospitals.
• Hospital ownership was identified as a key factor influencing efficiency.
• Market competition and average length of stay showed significant differences related to ownership.

Conclusions:

• The findings suggest private hospitals achieve higher operational efficiency in the Taiwanese context.
• Hospital ownership is a critical determinant influencing efficiency and operational characteristics.
• Evidence-based insights can guide improvements for less efficient public hospitals.