Analyzing the efficiency differences among basic health units in Sargodha District

Abbas, Touqeer and Awan, Masood Sarwar and Aslam, Muhammad Amir and Waqas, Muhammad (2011): Analyzing the efficiency differences among basic health units in Sargodha District. Published in: Journal of Economics and Behavioral Studies , Vol. 3, No. 1 (2011): pp. 42-50.

Abstract

Pakistan has adequate infrastructure for health services delivery at primary level. The study aims to calculate the technical efficiency of Basic Health Units (BHUs) in Sargodha by using the Data Envelopment Analysis (DEA) with the choice of inputs and outputs being specific to BHUs operation. DEA model results reveals that the mean technical efficiency under, Constant Returns to Scale (CRS) and Variable Returns to Scale (VRS) was 0.719 and 0.807 while the mean scale efficiency was 0.88. Study exposed that 77 % BHUs were technically inefficient under CRS while 66 % BHUs were technically inefficient under VRS modal. Overall 76% BHUs were inefficient and destructing the infrastructure. Moreover, findings evidently point to adverse inefficiency of BHUs in health services delivery. Study concluded that existing high level of inefficiency in BHUs needs institutional fascination for scaling up BHUs to meet both regional as well international targets such as Millennium Development Goals (MDGs) and recommended such measures that may curb the waste.

• Item Type: MPRA Paper
• Language: English
• Keywords: Basic Health Units, Technical Efficiency, Data Envelopment Analysis, Pakistan
• Subjects: I - Health, Education, and Welfare > I1 - Health > I11 - Analysis of Health Care Markets; H - Public Economics > H5 - National Government Expenditures and Related Policies > H51 - Government Expenditures and Health; I - Health, Education, and Welfare > I1 - Health > I18 - Government Policy ; Regulation ; Public Health; H - Public Economics > H7 - State and Local Government ; Intergovernmental Relations > H75 - State and Local Government: Health ; Education ; Welfare ; Public Pensions

References

Afonso, A. & Fernandes, S. (2008). Assessing hospital efficiency: Non-parametric evidence for Portugal. Working paper, Lesbian University Portugal.

Akazili, J., Adjuik, M., Appiah, C. J. & Zere, E. (2008). Using Data Envelopment Analysis to Measure the Extent of Technical Efficiency of Public Health Centers in Ghana. Bio Med Central Ltd, 20 (2), 232-248.

Akazili, J., Adjuik, M., Chatio, S., Kanyomse, E., Hodgson, A., Aikins, M. and Gyapong, J. (2008). What are The Technical and Allocative Efficiencies of Public Health Centers in Ghana. Ghana Medical Journal, 42 (4), 149-155.

Alvarado, J. R. (2006). Evaluating Technical Efficiency of Primary Health Care in the Governments of Chile. Working paper, Autonomous University of Barcelona.

Banker, R. D., Charnes, A. & Cooper, W. W. (1984). Some Models for Estimating Technical and Scale efficiencies in Data Envelopment Analysis. Management Science, 30 (9), 1078–1092.

Banker, R. D., Conrad, R., & Strauss, R. (1986). A Comparative Application of Data Envelopment Analysis and Translog Methods: An illustrative study of hospital production”, Management Science, 32 (1), 30-44.

Barbetta, G. P., Turati, G. & Zago, A. M. (2007). Behavioral Difference between Public and Private not-for-profit Hospitals in the Italian National Hospitals. Health Economics, 16 (1), 75-96.

Bhatti, M. A. & Khan, S. A. (2005). Health Facilities (BHUs). Professional Med J, 12(4), 357-363.

Blank, J. L. T. & Valdmanis, V. G. (2009). Environmental Factors and Productivity on Dutch Hospitals: A Semi-Parametric Approach. Health Care Management Science, 13 (1), 27-34.

Charnes, A., Cooper, W. W. & Rhodes, E. (1978). Measuring the Efficiency of Decision-Making Units. European Journal of Operational Research, 2 (4), 429-444.

Chua, C. L., Palangkaraya, A. & Yong, J. (2009). Hospital Competition, Technical Efficiency, and Quality. Working Paper, Melbourne Institute Series.

Dash, U., Vaishnavi, S. D. & Muraleedharan, V. R. (2010). Technical Efficiency and Scale Efficiency of District Hospitals. Journal of Health Management, 12 (3), 231-248.

Farell, M. J. (1957). The Measurement of Productive Efficiency. Journal of Royal Statistical Society, 120, 253-281.

Government of Pakistan Economic Survey. 2008-2009, 2009-2010. Islamabad: Economic Advisor’s Wing, Finance Division.

Ismail, M. A. (2010). Technical Efficiency of Sudan’s Health Institutions: A State-level Analysis. Sudanese Journal of Public Health, 5 (3), 122-129.

Khan, M. A. (2009). Failure Analysis of Primary Health Care in Pakistan & Recommendations for change (Research Report). Insaf Research Wing.

Marschall, P. & Flessa, S. (2008). Assessing the Efficiency of Rural Health Centers in Burkina Faso: An Application of Data Envelopment Analysis, Journal of Public Health, 17 (2), 87–95.

Multiple Indicator Cluster Survey Report, Government of the Punjab Planning & Development Department Bureau of Statistics (2007-08).

Renner, A., Joses M. K., Eyob, A. Z., Barry, S. P., Kirigia, D. G., Kamara, C., Muthuri, L. H. K. (2005). Technical efficiency of peripheral health units in Pujehun district of Sera Leaone: A DEA application, BMC Health Services Research, 5 (77), 1-11.

Zere, E., Mbeeli, T., Shangula, K., Mandlhate, C., Mutirua, K., Tjivambi, B., & Kapenambili, W. (2006). Technical efficiency of district hospitals: Evidence from Namibia using Data Envelopment Analysis, Cost Effectiveness and Resource Allocation, 4 (5), 1-9.