Performance Analysis of Hospitals in Kerala Using Data Envelopment Analysis Model

Abstract

Performance analysis in any industry plays a vital role in understanding the current scenario and thereby improving the overall efficiency. Using a sample of 20 hospitals randomly selected in Kerala, performance measures of quality were examined as they related to technical efficiency. Efficiency scores for the study hospitals were computed using data envelopment analysis (DEA). The study found that the technically efficient hospitals were performing well as far as quality measures were concerned. DEA can be used to benchmark both dimensions of hospital performance, that is, technical efficiency and quality. The variables selected for the study were divided under input and output measures. Using the DEA model, the factors considered were weighed and analysis was done. The input variables under study are bed number, trained medical staff and services offered. The output variables considered were outpatient rate, mortality rate and number of surgical operations in a month. Through the study, performance of each hospital is measured, and it aims to find out a relation between the input and output variables.