Analysis of the cost and efficiency relationship: experience in the Turkish pay for performance system

Gök, Mehmet Şahin; Altındağ, Erkut

doi:10.1007/s10198-014-0584-6

Cited by 36 publications

(30 citation statements)

References 29 publications

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“…The CCR efficiency assessment by the may be affected if the DMUs are not operating on the optimal scale, since CRS does not distinguish between the scale and pure (managerial) technical efficiency 35. If the efficiency analysis considers a managerial perspective, a BCC technology assumption will be appropriate to understand if a scale of operations or provider’s practice affects productivity 27 36. Scale efficiency (SE) is defined as a ratio of CRS to VRS efficiency scores and provides evidence whether the DMU is operating on the optimal scale size 12 20.…”

Section: Methodsmentioning

confidence: 99%

Efficiency evaluation of public hospitals in Saudi Arabia: an application of data envelopment analysis

Alatawi

Niessen²,

Khan³

2020

BMJ Open

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ObjectiveIn this study, we assess the performance of public hospitals in Saudi Arabia. We detect the sources of inefficiency and estimate the optimal levels of the resources that provide the current level of health services. We enrich our analysis by employing locations and capacities of the hospitals.DesignWe employ data envelopment analysis (DEA) to measure the technical efficiency of 91 public hospitals. We apply the input-oriented Charnes, Cooper and Rhodes, and Banker, Charne, Cooper models under Constant and Variable Returns-to-Scale. The assessment includes four inputs, and six output variables taken from the Ministry of Health databases for 2017. We conducted the assessment via PIM-DEA V.3.2 software.SettingMinistry of health-affiliated hospitals in the Kingdom of Saudi Arabia.ResultsFindings identified 75.8% (69 of 91) of public hospitals as technically inefficient. The average efficiency score was 0.76, indicating that hospitals could have reduced their inputs by 24% without reduction in health service provision. Small hospitals (efficiency score 0.79) were more efficient than medium-sized and large hospitals. Hospitals in the central region were more efficient (efficiency score 0.83), than those located in other geographical locations. More than half of the hospitals (62.6%) were operating suboptimally in terms of the scale efficiency, implying that to improve efficiency, they need to alter their production capacity. Performance analysis identified overuse of physician’s numbers and shortage of health services production, as major causes of inefficiency.ConclusionMost hospitals were technically inefficient and operating at suboptimal scale size and indicate that many hospitals may improve their performance through efficient utilisation of health resources to provide the current level of health services. Changes in the production capacity are required, to facilitate optimal use of medical capacity. The inefficient hospitals could benefit from these findings to benchmarking their system and performance in light of the efficient hospital within their capacity and geographical location.

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Section: Methodsmentioning

confidence: 99%

Efficiency evaluation of public hospitals in Saudi Arabia: an application of data envelopment analysis

Alatawi

Niessen²,

Khan³

2020

BMJ Open

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“…On the other hand, the study indicated that the hospitals located in the emigrating regions are better off in terms of efficiency when compared to the hospitals located in immigrating regions. In a more recent study, Gok & Altındağ (2015), analyzed the effects of the pay for performance system on the efficiencies of public and private hospitals in Turkey, with a sample of 251 hospitals of which 25 are private and 226 are public for the years 2001-2008. According to the results of their study, while the average efficiencies of public hospitals tend to increase particularly in the implementation period of the pay for performance system, the change in the average efficiencies of private hospitals was vice versa.…”

Section: Berj (7) 2 2016mentioning

confidence: 99%

The Technical Efficiency of Hospital Inpatient Care Services: An Application for Turkish Public Hospitals

Atilgan¹

2016

berj

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In this study, the efficiency analysis of Turkish Ministry of Health (MoH) hospitals' inpatient care services is done by using the Stochastic Frontier Analysis (SFA) method. In the analysis, cross-sectional data on 459 acutecare hospitals in 2013 were used and the sample was consisted of only MoH general and teaching hospitals. A cross sectional version of SFA inefficiency efeects model speciiccation is used to estimate the inpatient care service production efficiency. The results of this paper suggest that, the technical inefficiency of inpatient care services of MoH hospitals is closely related with the hospital size. As the hospital capacity decreases or/and the role group of the hospital lowers down, the hospital efficiency scores reduces signiiccantly. The other important icnding of this paper is that the efficiency scores are inversely related with the socioeconomic development level of the region or province where the hospital is located. The mean efficiency scores decreases in the western part of the Turkey which has the regions that are socioeconomically more developed and more populated compared to the others.

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“…It integrates all aspects of business activities with the market; therefore, it is the area of external factors. However, the financial result is influenced by the costs; the value of the costs depends on the internal conditions in a company (Labro, 2015;Gok, Altindag, 2015). Achieving a favourable financial result is a main purpose of all enterprises.…”

Section: Methodology Of the Researchmentioning

confidence: 99%

Profitability Evaluation of Hospital Departments Forming a Health Care Entity

Mioduchowska-Jaroszewicz

Romanowska

2016

Economics &Amp; Sociology

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ABSTRACT. This aim of the article is to present the results of profitability evaluation of the departments forming the studied healthcare entity from Poland. In the analysis of profitability the authors applied simple tools of financial analysis, i.e. absolute deviation, indicators of growth rate and indicators of structure. Revenues were compared with costs in order to determine the profitability of each department of the studied healthcare entity. Despite the fact that not all the departments in this entity showed profitability, it should be emphasized that according to the EU Health for Growth Programme 2014-2020 health is a profitable investment in itself. Moreover, the studies so far carried out in 22 EU countries revealed that health is a good investment for the future.

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Analysis of the cost and efficiency relationship: experience in the Turkish pay for performance system

Cited by 36 publications

References 29 publications

Efficiency evaluation of public hospitals in Saudi Arabia: an application of data envelopment analysis

Efficiency evaluation of public hospitals in Saudi Arabia: an application of data envelopment analysis

The Technical Efficiency of Hospital Inpatient Care Services: An Application for Turkish Public Hospitals

Profitability Evaluation of Hospital Departments Forming a Health Care Entity

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