The Relative Efficiency of Jordanian Public Hospitals Using Data Envelopment Analysis and Pabon Lasso Diagram
Global Journal of Business Research, v. 7 (2) pp. 59-72, 2013
14 Pages Posted: 29 Jan 2013
Date Written: 2013
This study aims at investigating and measuring the relative efficiency of public hospitals performance in Jordan, during the period (2006-2008), using DEA and Pabon-Lasso Diagram. The results indicate that the average efficiency of those hospitals is varied and ranges between (73%) to (100%). The average of the relative efficiency of the sample hospitals over the study period is 94%. Of 15 hospitals, the number of efficient hospitals increased from 7 in 2006 to 9 in 2007, but decreased to 8 in 2008. The results are compared with old efficiency scores of the same hospitals reported in the literature. This comparison leads to signify that the efficiency of public sector hospitals in Jordan is varied over time, due to decreasing public expenditures on health care per capita. However, the results concerning ratio analysis in explaining efficiency are inconsistent; implying that these institutions are either having poor management or they treat long stays diseases.
Keywords: Hospitals, Efficiency, DEA, Pabon Lasso, Jordan
JEL Classification: C61, C67, D02, H11, H51, I12
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