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

AUTHORS

Reza Goudarzi 1 , Nader Rjabi Gilan 2 , Seyed Ramin Ghasemi 2 , * , Soheila Reshadat 2 , Rouhollah Askari 3 , Mohammad Ahmadian 2

AUTHORS INFORMATION

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

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

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

How to Cite: Goudarzi R, Rjabi Gilan N, Ghasemi S R, Reshadat S, Askari R, et al. Efficiency measurement using econometric stochastic frontier analysis (SFA) method, Case study: hospitals of Kermanshah University of Medical Sciences, J Kermanshah Univ Med Sci. 2014 ; 17(10):e74336. doi: 10.22110/jkums.v17i10.911.

ARTICLE INFORMATION

Journal of Kermanshah University of Medical Sciences: 17 (10); e74336
Published Online: January 29, 2014
Article Type: Research Article
Received: July 15, 2013
Accepted: October 29, 2013
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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

© 2014, Journal of Kermanshah University of Medical Sciences. This is an open-access article distributed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/) which permits copy and redistribute the material just in noncommercial usages, provided the original work is properly cited.

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