Technical Efficiency in Public Hospitals in Kenya: A Two ¨CStage Data Envelopment Analysis

Francis Mwihia, James Machoki M¡¯ Imunya, Germano Mwabu, Urbanus Kioko and Benson Estambale

International Journal of Economics and Finance, 2018, vol. 10, issue 6, 141-150

Abstract: The paper uses the DEA technique to estimate efficiency scores in Kenyan public hospitals and then applies the Tobit regression to study inter-hospital variation in the scores. The DEA analysis reveals that small hospitals are more efficient than large hospitals, with efficiency levels ranging from 74-91% in small DMUs and from 57-78% in large DMUs. Tobit regression analysis shows efficiency scores are negatively correlated with the hospital¡¯s distance from the manager¡¯s residence and from the capital city. Internal and external supervisions are suggested as mechanisms for increasing performance of hospitals.

Keywords: hospitals; technical and scale efficiency; DEA; Tobit regression; hospital supervision; Kenya (search for similar items in EconPapers)
Date: 2018
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Persistent link: https://EconPapers.repec.org/RePEc:ibn:ijefaa:v:10:y:2018:i:6:p:141-150

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