Assessing Financial Performance of NAJA Hospitals Using Data Envelopment Analysis Technique

Increasing the cost of hospital services in most countries, requires effective use of available resources through the use of resource assignment models and performance evaluation. Data Envelopment Analysis (DEA) is one of the mathematical models used to evaluate the performance of organizations with homogeneous units based on inputs and outputs. The purpose of this study was to evaluate the financial performance of NAJA hospitals using the Data Envelopment Analysis and ranking them based on efficiency.

For this descriptive research, data was collected through hospitals’ documents and formulated in BCC output model using Lingo software.

All NAJA hospitals have a relative level of efficiency, but there are differences in levels. ‘A’ hospital ranked first and ‘G’ hospital was the last.

To increase efficacy, NAJA hospitals should focus on increasing outputs of model, instead reducing the inputs.