The application of the Data Envelopment Analysis method to evaluation and planning of hospital efficiency in Latvia

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The political goal of the Guidelines for Public Health for 2011-2017
is to promote the efficient management of the health care system and the use of
resources to optimize spending and the long term operation of the health care
system. In accordance with this political goal, the most optimal state funded
hospitals were determined from the standpoint of productivity and efficiency.
Additionally, an evaluation was carried out to establish how funding has
influenced hospital productivity and efficiency. This study analysed hospitals
that provide state funded emergency medical assistance by separating them
into three groups according to their status and size. The study applied the
Data Envelopment Analysis (DEA) method to evaluate the technical and cost
efficiency of hospitals. Technical efficiency is evaluated by analysing human
resource suitability for hospital activities. Cost efficiency is evaluated by
analysing the efficient use of financial resources for hospital activities. Formulas
developed by the author of this study as well as formulas developed by other
authors were used as a basis for evaluating hospital productivity and efficiency.
The DEA method’s formula was used to evaluate efficiency. Five productivity,
twelve technical efficiency and seven cost efficiency indicators were calculated
for each hospital. The obtained results were summarised in three tables in
which the attained efficiency was recalculated into percentages. These results
show significant differences in each group for both productivity and efficiency.
Similarly, differences in productivity and efficiency are apparent for one hospital
over the course of time.
Original languageEnglish
Pages (from-to)79-94
Number of pages15
JournalJournal of Economics and Management Research
Publication statusPublished - 2013
Externally publishedYes

Field of Science*

  • 3.3 Health sciences

Publication Type*

  • 1.4. Reviewed scientific article published in Latvia or abroad in a scientific journal with an editorial board (including university editions)


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