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

The study measured the technical efficiency of seventeen hospitals in Addis Ababa using arnfive year panel data(2000/01-2004/05) employing both parametric and non-parametricrnmodels. We used DEA and DEA-Malmquist models (non-parametric approach) to identifyrnthe level of efficiency of hospitals, while determinants of technical efficiency werernexamined using a censored-Tobit regression model (parametric approach).rnResults of the CRS DEA model showed that 5(29.4%) hospitals were found technicallyrnEfficient, while 12(70.6%) were inefficient. The VRS DEA model indicated 9(52.9%)rnHospitals were technically efficient and 8(47.1%) Hosppitals were technically inefficient.rnOut of the sampled hospitals, 5(29.4%) hospitals were found scale efficient, while12rn(70.6%) were scale inefficient.rnThe results of the censored-Tobit model indicated that age, size, teaching status, averagernbed occupancy rate and number of medical doctors to total staff were found significantlyrnassociated with technical efficiency scores.

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