How is the medical service efficiency in China? An empirical analysis using stochastic frontier approach and gravity models

Faguang Wen, Xue Fang, Ang Shan, Ribesh Khanal and Jin Huang

International Journal of Health Planning and Management, 2022, vol. 37, issue 5, 2949-2963

Abstract: The COVID‐19 has heightened the focus of medical services. Scientifically evaluating the efficiency of medical services and defining their spatial transmission relationship is crucial for the rational allocation of health resources and the accomplishment of balanced regional medical service growth. We used a Stochastic Frontier Model to calculate medical service performance in Chinese provinces and the Gravity Model to study the spatial relationship of medical service performance across provinces using data from 2009 to 2018. We discover that: (1) population density and proportion of technical personnel are significantly positively correlated with the efficiency of regional medical services, whereas health institution density has a significantly negative influence. Their respective influence coefficients were 1.717, 0.647, and 0.407. (2) In China, the regional development of medical service efficiency is unbalanced. The east, middle, and west multi‐year average medical service efficiency were 0.65, 0.46, and 0.53, respectively, and their gaps were narrowing; the south and north average efficiency were 0.591, 0.516, respectively, and their gaps were widening. (3) Our medical efficiency network is not yet widespread in the country. Hubei, Henan, Shandong, Jiangsu, Zhejiang, and Beijing were at the centre of the medical efficiency network, driving and connecting the nation's medical service. Our findings offer specific recommendations for better understanding and improving the efficiency of medical services.

Date: 2022
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