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Technical efficiency and productivity growth in public sector hospitals of Uttarakhand (India)

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Abstract

This paper measures technical efficiency (TE) and total factor productivity (TFP) of 27 government hospitals of Uttarakhand (India) through data envelopment analysis based Malmquist Productivity Index for the period from 2001 to 2011. Technical efficiency change (TECh) and technical change (TECHCh) for each hospital are also estimated to identify sources of TFP growth. The results show that on average, TFP in the hospitals increased by a rate of 4.9 % per annum, with slightly higher growth observed in TE (2.6 %) than in technology (2.2 %). The study also reveals that TFP growth varies across regions and areas. On average, it has grown slightly faster in Garhwal region than Kumaon region. Further, it is observed relatively higher in the hospitals of plain/semi-plain areas than that of hill areas. It is observed that in some hospitals, TECh and TECHCh indices did not move in the same direction and therefore positive impact of one component on the TFP growth was largely cancelled by the negative impact of the other. The paper suggests that TFP in the public hospitals could be improved by reallocating the staff from inefficient hospitals to efficient ones; improving human capital base of inefficient hospitals; and investing in new medical technology.

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Abbreviations

CHC:

Community Health Center

CRS:

Constant returns to scale

DMUs:

Decision making units

DRS:

Decreasing returns to scale

DEA:

Data envelopment analysis

GAA:

Growth accounting approach

IPD:

In Patient Department

MPI:

Malmquist Productivity Index

NRHM:

National Rural Health Mission

OPD:

Out Patient Department

PHC:

Primary health center

PFP:

Partial factor productivity

PTE:

Pure technical efficiency

PMS:

Paramedical staff

PTECh:

Pure technical efficiency change

SE:

Scale efficiency

SECh:

Scale efficiency change

SFA:

Stochastic frontier approach

TE:

Technical efficiency

TECh:

Technical efficiency change

TECHCh:

Technical change

TFPCh:

Total factor productivity change

TFP:

Total factor productivity

VRS:

Variable returns to scale

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Author information

Authors and Affiliations

  1. Department of Mathematics, Indian Institute of Technology Roorkee, Roorkee, 247667, India

    Sandeep Kumar Mogha & Shiv Prasad Yadav

  2. Department of Humanities and Social Sciences, Indian Institute of Technology Roorkee, Roorkee, 247667, India

    S. P. Singh

Authors
  1. Sandeep Kumar Mogha
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  2. Shiv Prasad Yadav
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  3. S. P. Singh
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Corresponding author

Correspondence to Sandeep Kumar Mogha.

Appendices

Appendix 1: Distance functions used to calculate MPIs

$$ \begin{gathered} \left. \begin{gathered} \left[ {D^{t} (X^{t} ,Y^{t} )} \right]^{ - 1} = \mathop {\text{Max}}\limits_{\phi ,\lambda } \phi \hfill \\ s.t.,\;\phi \;y_{r}^{t} - \sum\limits_{j = 1}^{n} {\lambda_{j}^{t} y_{rj}^{t} } \le 0,\quad \forall r = 1, \ldots ,s \hfill \\ \sum\limits_{j = 1}^{n} {\lambda_{j}^{t} x_{ij}^{t} } \le x_{i}^{t} \quad \forall i = 1, \ldots ,m \hfill \\ \lambda_{j}^{t} \ge 0\quad \forall j = 1, \ldots ,n \hfill \\ \end{gathered} \right\} \hfill \\ \phi \;{\text{is}}\;{\text{unrestricted}}\;{\text{in}}\;{\text{sign}} \hfill \\ \end{gathered} $$
(4)
$$ \begin{gathered} \left. \begin{gathered} \left[ {D^{t + 1} (X^{t + 1} ,Y^{t + 1} )} \right]^{ - 1} = \mathop {\text{Max}}\limits_{\phi ,\lambda } \phi \hfill \\ s.t.,\quad \phi \;y_{r}^{t + 1} - \sum\limits_{j = 1}^{n} {\lambda_{j}^{t + 1} y_{rj}^{t + 1} } \le 0,\quad \forall r = 1, \ldots ,s \hfill \\ \sum\limits_{j = 1}^{n} {\lambda_{j}^{t + 1} x_{ij}^{t + 1} } \le x_{i}^{t + 1} \quad \forall i = 1, \ldots ,m \hfill \\ \lambda_{j}^{t + 1} \ge 0\quad \forall j = 1, \ldots ,n \hfill \\ \end{gathered} \right\} \hfill \\ \phi \;{\text{is}}\;{\text{unrestricted}}\;{\text{in}}\;{\text{sign}} \hfill \\ \end{gathered} $$
(5)
$$ \begin{gathered} \left. \begin{gathered} \left[ {D^{t} (X^{t + 1} ,Y^{t + 1} )} \right]^{ - 1} = \mathop {\text{Max}}\limits_{\phi ,\lambda } \phi \hfill \\ s.t.,\phi y_{r}^{t + 1} - \sum\limits_{j = 1}^{n} {\lambda_{j}^{t} y_{rj}^{t} } \le 0,\quad \forall r = 1, \ldots ,s \hfill \\ \sum\limits_{j = 1}^{n} {\lambda_{j}^{t} x_{ij}^{t} } \le x_{i}^{t + 1} \quad \forall i = 1, \ldots ,m \hfill \\ \lambda_{j}^{t} \ge 0\quad \forall j = 1, \ldots ,n \hfill \\ \end{gathered} \right\} \hfill \\ \phi \;{\text{is}}\;{\text{unrestricted}}\;{\text{in}}\;{\text{sign}} \hfill \\ \end{gathered} $$
(6)
$$ \begin{gathered} \left. \begin{gathered} \left[ {D^{t + 1} (X^{t} ,Y^{t} )} \right]^{ - 1} = \mathop {\text{Max}}\limits_{\phi ,\lambda } \phi \hfill \\ s.t.,\phi y_{r}^{t} - \sum\limits_{j = 1}^{n} {\lambda_{j}^{t + 1} y_{rj}^{t + 1} } \le 0,\quad \forall r = 1, \ldots ,s \hfill \\ \sum\limits_{j = 1}^{n} {\lambda_{j}^{t + 1} x_{ij}^{t + 1} } \le x_{i}^{t} ,\quad \forall i = 1, \ldots ,m \hfill \\ \lambda_{j}^{t + 1} \ge 0\quad \forall j = 1, \ldots ,n \hfill \\ \end{gathered} \right\} \hfill \\ \phi \;{\text{is}}\;{\text{unrestricted}}\;{\text{in}}\;{\text{sign}} \hfill \\ \end{gathered} $$
(7)

Appendix 2

See Table 8.

Table 8 Descriptive statistics of input and output variables for the entire period (2001–2011)
Full size table

Appendix 3

See Table 9.

Table 9 Full name of selected hospitals
Full size table

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Mogha, S.K., Yadav, S.P. & Singh, S.P. Technical efficiency and productivity growth in public sector hospitals of Uttarakhand (India). Int J Syst Assur Eng Manag 6, 390–406 (2015). https://doi.org/10.1007/s13198-014-0270-1

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