The Efficiency Of Hospitals In Hunan Province Via Data Envelopment Analysis (DEA) Model

Purpose: The purpose of this paper is to measure the performance of 623 hospitals in Hunan Province. Four performance models are developed for measuring overall performance, service efficiency, manpower efficiency, and revenue efficiency. It's very helpful for hospital manager to evaluate the efficiency of hospital and other health service management organizations.Method: This research is made on the foundation of data from the existing human resources information of 623 hospitals in 2005 from Hunan Health Department Information Center and financial statistic data in 2005.Use data envelopment analysis (DEA) model and DEAP software to study the data.Results:1. In the area-hospital-performance-analysis, the overall analysis indicates areas at the constant returns to scale stage aconut for 35.71%, areas at the increasing returns to scale stage aconut for 64.29%; the medical service efficiency anlysis indicates areas at the constant returns to scale stage aconut for 42.86%, areas at the increasing returns to scale stage aconut for 50%, areas at the decreasing returns to scale stage aconut for 7.14%;the human resource efficiency anlysis indicates areas at the constant returns to scale stage aconut for 42.86%, areas at the increasing returns to scale stage aconut for 50%, areas at the decreasing returns to scale stage aconut for 7.14%; the revenue efficiency anlysis indicates areas at the constant returns to scale stage aconut for 21.43%, areas at the increasing returns to scale stage aconut for 78.57%.2. In the study of 35 3A hospitals, the overall efficiency efficiency anlysis indicates hospitals at the constant returns to scale stage aconut for 54.29%, hospital at the increasing returns to scale stage aconut for 20%, hospitals at the decreasing returns to scale stage aconut for 25.71%; the medical service efficiency anlysis indicates hospitals at the constant returns to scale stage aconut for 17.14%, hospitals at the increasing returns to scale stage aconut for 51.43%, hospitals at the decreasing returns to scale stage aconut for 31.43%; the human resource efficiency anlysis indicates hospitals at the constant returns to scale stage aconut for 11.43%, hospitals at the increasing returns to scale stage aconut for 31.43%, hospitals at the decreasing returns to scale stage aconut for 57.14%. the revenue efficiency anlysis indicates hospitals at the constant returns to scale stage aconut for 17.14%, hospitals at the increasing returns to scale stage aconut for 51.43%, hospitals at the decreasing returns to scale stage aconut for 31.43%.Conclusion:1. As a non-statistical and non-parametric approach, DEA is outstanding method in finding the causes of low efficiency.2. 623 hospitals in Hunan have reached maturity period, regardless of the overall resource allocation or overall economic scale, has achieved the most effective distribution and scale economies;3. The reasons for the low scale efficiency in the hospital are the unrestricted investment, and ignored the allocation of resources. The work isn't in a standard optimal scale, and this results in higher operating costs; The reason for low pure technical efficiency is the personnel mismanagement, and this led to excessive waste of resources;Proposal:1.Hospitals with poor technical efficiency should adjust their use of resources, and giving the appropriate allocation of resources;2.On the other hand, hospitals with relative low scale efficiency, can be divided into two parts : First, for the hospital in increasing returns to scale, the scale can appropriately by expanded diminishing returns to scale, the size should be reduced to adjust to constant returns to scale, making the total efficiency gains to map the best Burra realm.3.As the DEA estimated value of the efficiency is relative and not absolute. So when the hospital is relative in efficiency, it does not means that the hospital has no room for improvement. Masters concerned about the overall efficiency and the level of competitiveness of the hospital, and not only cares for its relatively efficiency. And hospital managers should adopt other evaluation tools to get the information to identify possible improvements and direction.