Operational efficiency analysis of public hospital systems of india: Application of data envelopment analysis

Abstract

The focus of the study is to analyses the efficiency of the public run hospitals in the eastern part of India and also provide an overview of the status of the service is being delivered regarding their operational efficiency. There is also a need to identify the various factors like bed turnover rate, bed occupancy rate, average length of stay, outpatient per bed day, the rate of major surgery performed, emergency admission rate, the rate of patients referred to another hospital, percentage of referring patients to total inpatient, physician to nurse ratio, etc., that’s affecting the efficiency and identify the correlation between these factors. For that non-parametric frontier techniques, Data Envelopment Analysis (DEA) has been utilized to assess and compare the efficiency of the public hospital systems of India. Results of DEA show that some of the hospitals are performing efficiently, and some of the hospitals are performing inefficiently. Whereas there is slack in beds, physicians and nurses in inefficient hospitals due to not utilize the input resources efficiently.