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