Efficiency measurement and spatial spillover effect of provincial health systems in China: Based on the two-stage network DEA model

Abstract

The effectiveness of a health care system is an important factor for improving people's health and quality of life. The purpose of this research is to analyze the efficiency and spatial spillover effects of provincial health systems in China using panel data from 2009 to 2020. We employ the two-stage network DEA model to evaluate their efficiencies and use a spatial econometric model for empirical estimation. The results suggest that the overall efficiency, resource allocation efficiency, and service operation efficiency of health systems in different regions of China generally have fluctuating upward trends, with large differences in efficiency among the various regions. Further analysis reveals that the efficiency of China's health system has a significant spatial spillover effect. The level of economic development, fiscal decentralization and old-age dependency ratio are important factors affecting the health system efficiency. Our findings help to identify the efficiency and internal operating mechanisms of China's health system at different stages, and are expected to contribute to policymakers' efforts to build a high-quality health service system.