Efficiency measurement using econometric stochastic frontier analysis (SFA) method, Case study: hospitals of Kermanshah University of Medical Sciences

Reza Goudarzi; Nader Rjabi Gilan; Seyed Ramin Ghasemi; Soheila Reshadat; Rouhollah Askari; Mohammad Ahmadian

doi:10.22110/jkums.v17i10.911

Journal of Kermanshah University of Medical Sciences

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https://doi.org/10.22110/jkums.v17i10.911

Efficiency measurement using econometric stochastic frontier analysis (SFA) method, Case study: hospitals of Kermanshah University of Medical Sciences

Author(s):

Reza Goudarzi¹,

Nader Rjabi Gilan²,

Seyed Ramin Ghasemi^2,*,

Soheila Reshadat ²,

Rouhollah Askari ³,

Mohammad Ahmadian²

1Research Center for Health Services Management, Institute for Future Studies in Health, Kerman University of Medical Sciences, Kerman, Iran

2Social Development & Health Promotion Research Center, Kermanshah University of Medical Sciences, Kermanshah, Iran

3Dept.of Healthcare Management, Shahid Sadoughi University of Medical Sciences, Yazd, Iran

Journal of Kermanshah University of Medical Sciences:Vol. 17, issue 10; e74336

Published online:Jan 29, 2014

Article type:Research Article

Received:Jul 15, 2013

Accepted:Oct 29, 2013

How to Cite:Reza GoudarziNader Rjabi GilanSeyed Ramin GhasemiSoheila Reshadat Rouhollah Askari Mohammad Ahmadianet al.Efficiency measurement using econometric stochastic frontier analysis (SFA) method, Case study: hospitals of Kermanshah University of Medical Sciences.J Kermanshah Univ Med Sci.17(10):e74336.https://doi.org/10.22110/jkums.v17i10.911.

Abstract

Background: Full consideration of the performance and efficiency of hospital costs necessitates the application of economic analysis techniques. The aim of this study was to assess the efficiency of hospitals in Kermanshah University of Medical Sciences through Stochastic Frontier Analysis (SFA) method.

Methods: The performance of Kermanshah hospitals (n=7) was assessed and analyzed by Stochastic Frontier Analysis (SFA) method during 2005-2011. Inpatient admission was considered as the output variable, while the number of medical doctors, nursing staff other personnel, active beds and outpatient admission were considered as the input variables. Frontier 4.1 software was used to analyze the data.

Results: Based on the results of performance evaluation using Cobb-Douglas production function, the mean efficiency score of the hospitals in the SFA method was 0.63. Also, the efficiency capacity in these hospitals could be promoted up to 37 percent.

Conclusion: Based on the results of Stochastic Frontier Analysis, downsizing the manpower in hospitals plays a major role in reducing hospital costs and improving their performance. Finally, it is necessary to investigate the effect of factors such as quality of service and patient satisfaction on hospital performance.

Keywords

Efficiency measurement

econometrics

Stochastic Frontier Analysis

hospital

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Author(s):

Reza Goudarzi:[PubMed][Scholar]
Nader Rjabi Gilan:[PubMed][Scholar]
Seyed Ramin Ghasemi:[PubMed][Scholar]
Soheila Reshadat :[PubMed][Scholar]
Rouhollah Askari :[PubMed][Scholar]
Mohammad Ahmadian:[PubMed][Scholar]