Directional distance function for FDH technologies with an application to Tunisian public hospitals

Arfa Chokri (), Hervé Leleu and Ben Romdhane Habiba
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Arfa Chokri: INTES, University of Carthage, Tunisia
Ben Romdhane Habiba: INSP, Faculty of Medicine, Tunisia

No 2008-ECO-03, Working Papers from IESEG School of Management

Abstract: Tunisian’s public hospitals have been often deemed inefficiency, yet unfortunately no empirical study has demonstrated the breadth and/or depth of this inefficiency. To address this issue, we develop a non parametric methodology to measure efficiency at patient level for five cardiology wards. This methodology is based on the estimation of the input directional distance function, using a recent developed linear form of free disposal hull model. Results show that, on average, each cardiology ward could save more than 50% of each input; whereas at the patient level, illness severity and patients’ profiles were associated with inefficiency. At the ward level, practice patterns and wards missions explain disparities on inefficiency. By defining sub-specializations or standard procedures for cardiology wards, we demonstrate where the public hospitals can save resources when treating these patients.

Keywords: Directional Distance Function; Free Disposal Hull; Tunisian’s public hospitals (search for similar items in EconPapers)
Pages: 24 pages
Date: 2008-07
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