Efficiency measurement amongst medical tourism service providers in India

Bikash Ranjan Debata, Bhaswati Patnaik, S.S. Mahapatra and S. Sreekumar

International Journal for Responsible Tourism, 2013, vol. 1, issue 1, 24-31

Abstract: The purpose of the present study is to develop an appropriate construct to benchmark Medical tourism service providers in India for formulating strategies through understanding deficiencies for improving their performance. This paper applies a non-parametric technique known as Data Envelopment Analysis (DEA) as a performance assessment tool for benchmarking of Medical tourism in India. A total of thirty nine medical tourism service providers in India are chosen for benchmarking purpose. The average score of efficiency is found 0.95 with a standard deviation of 0.084 when Charnes, Cooper and Rhodes (CCR) model is used. Similarly, when the Banker, Charnes and Cooper (BCC) model is used the average score is found to be 0.975 with a standard deviation of 0.06. In order to check for existence of significant difference between medical tourism performance scores calculated using DEA models (CCR and BCC), a paired sample t-test is carried out. It is found that there is a significant difference between efficiency scores obtained through CCR and BCC models. The study identifies the parameters in which the inefficient DMUs lack for formulating necessary strategies to improve upon them. This method, being a generic one can be adopted by the managers to assess Medical tourism performance in any environment provided the DMUs are homogenous in nature. The study alleviates the inconsistent methods of benchmarking practices using a simple but comprehensive methodology.

Keywords: Medical tourism; Benchmarking; Data envelopment analysis (DEA); Decision making units (DMUs) (search for similar items in EconPapers)
Date: 2013
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