Efficiency evaluation of healthcare services in China based on stochastic multicriteria acceptability analysis and directional distance function

Abstract

Evaluating the efficiency of healthcare services accurately can help in analyzing the rationality of inputs and outputs in such services. Considering the consistency and equity of assessment criteria, this study conducts the stochastic multicriteria acceptability analysis (SMAA-2) with a directional distance function to evaluate the efficiency of healthcare services in 31 provincial administrative regions of mainland China, as observed in 2018. We use SMAA-DDF to explore all the projection directions to the efficient frontier instead of a certain projection direction. We measure the maximum and average efficiencies for each of the 31 provincial healthcare services. Our empirical findings show that only seven provinces achieve optimal healthcare service efficiency; the eastern area performed the best, followed by the central, western, and northeast areas. Furthermore, the path along the projection directions is provided to help inefficient provinces improve their efficiency and obtain the best possible positions.