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Exploring effectiveness reserves in hospitals with the DEA method

Daniella Kucsma () and Krisztina Varga ()
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Daniella Kucsma: University of Miskolc, Lecturer
Krisztina Varga: University of Miskolc, Assistant Professor

Public Finance Quarterly, 2021, vol. 66, issue 6, 75 - 87

Abstract: In our study, we undertake a relative efficiency analysis of general inpatient hospitals with a 600-1200 bed capacity, which play a prominent role in the Hungarian health care system. In the 2015-2019 period, particular attention will be paid to the identification of available and meaningful indicators in the sector under study. The relative effectiveness analysis (DEA) method is a suitable response to this challenge. The DEA (Data Envelopment Analysis) method defines the efficiency values (ratio) and the efficiency frontier as a linear programming task. The analysis compares the efficiency values of the decision making units and calculates an efficiency frontier (best practice), which is used to determine an efficiency ranking. The deviations identified in the DEA model reveal the problems of inefficient units, the causes of inefficiency and the extent to which critical factors deviate from optimal. Accordingly, the information revealed by this method of analysis can provide useful guidance to organisational management on where and in what direction to make changes to improve efficiency.

Keywords: hospital; effectiveness analysis; DEA method (search for similar items in EconPapers)
JEL-codes: H11 I14 (search for similar items in EconPapers)
Date: 2021
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