Technical Efficiency Of Selected Hospitals In Addis Ababa Data Envelopment Analysis Approach

The study measured the technical efficiency of seventeen hospitals ill Addis Ababa using a fivernyear panel data(2000/01-2004/05) employing both parametric and non-parametric models. Wernused DEA alld DEA-Malmquist models (noli-parametric approach) to identify the level ofrnefficiency of hospitals, while determinants of technical efficiency were examined using arncensored-Tobit regression model (parametric approach).rnResults of the CRS DEA model showed that 5(29.4%) hospitals were found technically efficient,rnwhile 12(70.6%) were inefficient. The VRS DEA model indicated 9(52.9%) hospitals wererntechnically efficient and 8(47.1%) hosppitals were technically inefficient. Out of the sampledrnhospitals, 5(29.4%) hospitals were found scale efficient, while12 (70.6%) were scale inefficient.rnThe results of the censored-Tobit model indicated that age, size, teaching status, average bedrnoccupancy rate and number of medical doctors to total staff were found significantly associatedrnwith technical efficiency scores.

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