Efficiency Benchmarking Based on Data Envelopment Analysis: A Case Study for Hospitals in Selangor, Malaysia

  • Salim K.F.A
  • Alwadood Z.
  • Noor N.M.


The rapid increase in the number of populations necessitates the healthcare system in Malaysia to withstand the growing demands for healthcare services. In mission to improve the quality and health status of populations, Malaysia health system should achieve remarkable outcome from its management. Even though the study of performance in healthcare sector is crucial, to date there is no study has been conducted to measure the technical efficiency of public hospitals, specifically in the state of Selangor. The goals of this study are to evaluate the efficiency among ten public hospitals in the state of Selangor by using Data Envelopment Analysis (DEA) technique and determine the improvement strategies that could maximize the utilisation of resources in order to achieve full efficiency in their services. Data of these hospitals was obtained from 2015 Selangor Annual Report of Health. The set of inputs and outputs from ten hospitals in Selangor for a one-year period were selected for this study. The hospitals input measures include the number of beds, number of doctors, public health expenditures and number of admission reports. The output measures include the number of inpatients, outpatients, discharged patients, bed occupancy rate and number of surgeries. The findings of this study have shown that eight DMUs are operating at efficiency level of more than 90%, while two DMUs below 90%. The study also recommended the improvement strategy for the inefficient DMU. This strategy could be the indicator for policy makers in improving the efficiency of healthcare facilities in Malaysia.


Alwadood, Z., Noor, N. M., & Kamarudin, M. F. (2011). Performance measure of academic departments using Data Envelopment Analysis. IEEE Business, Engineering and Industrial Applications Symposium (ISBEIA2011), 395-399.
Ávila, M., Javier, F., Vergara Schmalbach, J. C., & Romero, R.R. (2017). Efficiency and productivity in access to Colombian public universities. Investigación y Desarrollo, 25(2), 6-33.
Applanaidu, S. D., Samsudin, S., Ali, J., Dash, U., & Chik, A. R. (2014). Technical and scale efficiency of public district hospitals in Kedah, Malaysia: A Data Envelopment Analysis (DEA). Journal of Health Management, 16(3), 327-335.
Ali, M., Debela, M., & Bamud, T. (2017). Technical efficiency of selected hospitals in Eastern Ethiopia, Health Economics Review, 7(1), 24.
Charnes, A., Cooper, W., & Rhodes, E. (1978). Measuring the efficiency of decision making units, European Journal of Operation Research, 2(6), 429-444.
Cielen, A., Peeters, L., & Vanhoof, K. (2004). Bankruptcy prediction using Data Envelopment Analysis. European Journal of Operational Research, 526-532.
Drebee, H.A. and Razak, N.A.A. (2018). Measuring the efficiency of colleges at the University of Al-Qadisiyah-Iraq: A Data Envelopment Analysis Approach, Jurnal Ekonomi Malaysia, 52(3), 153-166.
El-Mahgary, S., & Lahdelma, R. (1995). Data Envelopment Analysis: Visualizing the results. European Journal of Operational Research, 83(3), 700-710.
Fereshteh Farzianpur, A.H. (2017). Determining the technical efficiency of hospitals in Tabriz City using Data Envelopment Analysis for 2013-2014. Global Journal of Health Science, 9(5), 42-54.
Ibrahim, M. D., & Daneshvar, S. (2018). Efficiency Analysis of Healthcare System in Lebanon Using Modified Data Envelopment Analysis. Journal of Healthcare Engineering.
Annual Health Report 2015. Jabatan Kesihatan Negeri Selangor (2016). Retrieved from http://www.jknselangor.moh.gov.my
Mehtrak, M., Yusufzadeh, H., & Jaafaripooyan, E. (2014). Pabon Lasso and Data Envelopment Analysis: A complementary approach to hospital performance measurement. Global Journal of Health Science, 6(4), 107-116.
Min, A., Scott, L. D., Park, C., Vincent, C., & Ryan, C. J. (2019). Organizational factors associated with technical efficiency of nursing care in US Intensive Care Units, Journal of Nursing Care Quality.34(3), 242-249.
Malaysia Health System Research Volume I (March, 2016), Ministry of Health, Retrieved from http://www.moh.gov.my
Rouyendegh, B. D., Oztekin, A., Ekong, J., & Dag, A. (2019). Measuring the efficiency of hospitals: A fully-ranking DEA–FAHP approach. Annals of Operations Research, 278, 1-2.
Soteriou, A. C., Karahanna, E., Papanastasiou, C., & Diakourakis, M. S. (1998). Using Data Envelopment Analysis to evaluate the efficiency of secondary schools: The case of Cyprus. International Journal of Educational Management, 12(2), 65-73.
Stefko, R., Gavurova, B., & Kocisova, K. (2018). Healthcare efficiency assessment using Data Envelopment Analysis: Analysis in the Slovak Republic. Health Economics Review, 8(6).
Wang, X., Luo, H., Qin, X., Feng, J., Gao, H., & Feng, Q. (2016). Evaluation of performance and impacts of maternal and child health hospital services using Data Envelopment Analysis in Guangxi Zhuang Autonomous Region, China: A comparison study among poverty and non-poverty county level hospitals. International Journal for Equity in Health, 15(1), 131.
How to Cite
K.F.A, Salim; Z., Alwadood; N.M., Noor. Efficiency Benchmarking Based on Data Envelopment Analysis: A Case Study for Hospitals in Selangor, Malaysia. International Journal of Advanced Research in Technology and Innovation, [S.l.], v. 3, n. 1, p. 26-34, mar. 2021. ISSN 2682-8324. Available at: <https://myjms.mohe.gov.my/index.php/ijarti/article/view/12469>. Date accessed: 21 may 2022.