International Journal of Advances in Management and Economics (IJAME)

ISSN:2278-3369
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TitleEfficiency and Total Factor Productivity of Public Hospitals in Haryana (India): A Data Envelopment Analysis
AuthorDalbir singh
AbstractThe present study endeavors to analyze the efficiency and total factor productivity of public hospitals in the state of Haryana, one of the leading states of India, using Data Envelopment Analysis. The input variables identified for the study are doctors and support staff (including nurses, lab technicians and pharmacists) for measuring efficiency and total factor productivity. Similarly, inpatients and outpatients have been taken as outputs. Twenty hospitals have been chosen for the study. The study is based on primary and secondary data collected from officials and record maintained by public hospitals. Data Envelopment Analysis (DEA) is used to evaluate efficiency, allocative efficiency and total factor productivity (TFP) change making use of DEAP software. 90% hospitals have been observed to be technically inefficient having a mean TE score of 32%. Overall average TE score is 0.39 which implies that the public hospitals in Haryana may reduce the consumption of inputs by 61% without reducing the outputs. 90% hospitals have been observed to be scale inefficient having a mean SE score of 39%. Overall average scale efficiency has been observed 0.44. 60% hospitals make efficient use of input related to doctors whereas 35% hospitals have been efficient in using support staff efficiently. 60% hospitals were found working efficiently regarding inpatients. 85% hospitals were found working efficiently regarding outpatients. 15% hospitals were found to be allocatively efficient. The score of TFPCH (1.094) indicates that out of 9.4% growth, 5.9% is by TECHCH (1.059) and 3.3% by EFFCH (1.033). It is suggested by the study that on an average, scale inefficiency has been due to the increasing returns to scale. The estimate of total elasticity also suggests the operation of increasing returns to scale in public hospitals of Haryana State.
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