Assessing the Performance of a Private Hospital in Nepal: Evidence from Pabon Lasso and Regression Models

Abstract

There is limited empirical evidence on the relationship between management and performance of private hospitals in Nepal. We address this gap using de-identified inpatient data from a private hospital in Kathmandu between 2013 and 2017. We consider foreign-born and native-born patients separately, in addition to the full sample. Using a Pabon Lasso model, we assess relationship between hospital management and: (a) bed occupancy rate; (b) bed turnover rate; and (c) average length of stay. To complement the Pabon Lasso model, we use a regression analysis to assess the relationship between hospital management and length of stay in a multivariate framework. Our results indicate that separation between the chief executive officer (CEO) and board may promote better performance, versus CEO duality. However, there are important differences by performance indicator, patient type (i.e., native-born versus foreign-born) and analytical approach. These results comprise new evidence on the relationship between management and performance of private hospitals in a developing context.