Measuring the Technical Efficiency of Kermanshah University of Medical Sciences Hospitals, Using Data Envelopment Analysis Method (DEA): 2005-2011 (Nonparametric Approach)

Hospital is one of the most important economic units of health system in every country. So, focusing on hospital in health care economic studies is necessary. The aim of this study was to measure the technical efficiency of Kermanshah University of medical sciences hospitals by using Data Envelopment Analysis (DEA) method. In this descriptive study panel data was used and data was collected from hospitals by a checklist. Input-oriented Data Envelopment Analysis method was used to measure the technical efficiency. Input variables include: the number of physicians, nurses, and other personnel and also active beds, while outpatient and inpatient admission, occupied bed-day, and the number of surgical operations were considered as the output variables. Data were analyzed by Deap-2.1 software using data envelopment analysis method. The average of the technical efficiency of the hospitals was 0.92. This finding means that there is a potential capacity for improving hospital's efficiency (8%), without any increasing in costs or resources. Also, there were constant returns to scale in the study, therefore 1% increase in the use of all resources by hospitals, resulting in 1% increase in the services providing. The hospitals that have had lesser efficiency can improve their efficiency by applying experiences of efficient hospitals. Efficiency ranking of the hospitals can be used for financing the hospitals by authorities.