TECHNICAL EFFICIENCY OF PUBLIC DISTRICT HOSPITALS IN VIETNAM

Abstract

The objectives of this study aimed to evaluate the Technical Efficiency of public district hospitals in Vietnam and to determine factors affecting the hospitals’ efficiency. Input-Oriented Data Envelopment Analysis (DEA) model was applied to estimate the technical efficiency scores among 52 public district hospitals in 6 provinces of Vietnam in 2014. Then, Tobit regression model was employed to explore the determinant factors. Results of the DEA indicated that there were considerable variations of efficiency scores in terms of return to scale assumptions. The average variable return to scale technical efficiency (VRSTE) and constant return to scale technical efficiency (CRSTE) were 84.7% and 77.2%, respectively. While, mean scale efficiency (SE) was 90.9%. In this study, 35 (accounted for 67.3%) of DPHs were running inefficiently. In addition, the pattern of scale inefficiency showed that all 44 scale inefficient public district hospitals were increasing return to scale efficiency. Results of the Tobit regression model revealed that non-medical staff-physician ratio (NMSPR) and inpatient admission-physician ratio (IPAPR) were significantly correlated to VRSTE at 95% Confidence Interval. While bed occupancy rate (BOR), outpatient visit-physician ratio (OPVPR) and revenue from user fee-total revenue ratio (RUFTRR) were found insignificantly. Besides, most of determinant variables have the same signs as expected, exception BOR due to the current overload in Vietnamese hospitals. Finally, the findings showed that NMSPR ratio was the most influent explanatory variable because of its highest value coefficient among significant variables.