Performance Efficiency of Indian Private Hospitals Using Data Envelopment Analysis and Super-efficiency DEA

Abstract

India is expected to be ranked among the top three healthcare markets in terms of growth by 2020. The scale and scope for delivery of quality healthcare services demand high levels of service performance to provide effective and efficient services to patients. The purpose of this study is to assess the performance efficiency of Indian private hospitals using data envelopment analysis (DEA) and super-efficiency DEA. The analysis uses an output-oriented approach with a mix of four inputs and one output variables to identify the most efficient hospitals. In the first stage, a sample of 25 private hospitals is evaluated using DEA, and in the second stage, the same sample is analysed using super-efficiency DEA for discriminating the performance of the efficient hospitals. The results show seven hospitals as the most efficient ones using DEA in the first stage. Fortis Hospital Ltd emerges as the super-efficient hospital using super-efficiency DEA analysis in the second stage. The results obtained have managerial implications and provide the decision maker (DM) the requisite guidance for corrective actions.

Equity and efficiency of public hospitals’ health resource allocation in Guangdong Province, China

“…An output-oriented DEA model was employed to assess the efficiency of maternal and child health resource allocation in Hunan Province, China, and over 40% of regions were found to have poor performance [ 30 ]. Chitnis A and Mishra DK used the output-oriented CCR-DEA model and superefficiency DEA model to assess the performance efficiency of 25 Indian private hospitals and determined that the low use of resources was the main reason for the underperformance of hospitals [ 31 ]. Second, studies apply the two-stage DEA method, which combines the DEA method with the Tobit regression method, aiming at efficiency evaluation and exploration of influencing factors.…”

Assessing the efficiency of Malaysia health system in COVID-19 prevention and treatment response

“…Recent papers have reviewed the performance of healthcare in developed and developing countries (e.g. Chen et al [ 10 ] for Taiwan; Chitnis and Mishra [ 11 ] for India; Giménez et al, [ 12 ] for Mexico; Giménez et al [ 13 ] for Columbia; Hamzah and See [ 14 ] for Malaysia; Mastromarco et al [ 15 ] for Czech Republic; Li and He [ 16 ], Li et al [ 17 ], Liu et al [ 18 ] and Shen and Valdmanis [ 19 ] for China), however a gap using a more comprehensive measurement to assess performance of health systems in managing public health crisis is still evident. To date, no study on efficiency analysis during a pandemic crisis has been performed.…”

Financial Performance and Profile of Brazilian Hospitals

“…The focus turns to productivity affecting costs when efficiency is assessed through operating indicators. The analysis gains an improved dimension (Chitnis & Mishra, 2019) and accounts for sustainability in the long run when it also includes accounting data related to incomes and costs, receivables and payables (Emmanuel et al, 2004). Further gains can be obtained and add benchmarking value if the analysis also replaces absolute numbers with financial indicators (Penman, 1998).…”

“…International studies have analysed the relationship between financial performance and organisational profile. They have used different variables-including the hospitals' type (e.g., public, for-profit or not-for-profit) (Ramamonjiarivelo et al, 2018), context (e.g., emergency hospital, specialised hospital or university hospital) (Patidar et al, 2016), sources of payment (e.g., health insurers or engagement of the private sector by public managers; Portela et al, 2016) and profitability-to stratify the hospitals' levels of activities (Chitnis & Mishra, 2019). Such studies have measured financial performance in absolute numbers, but an alternative is the use of indicators (Penman, 1998).…”