What is it about?
The efficient use of organizational resources is integral to the existence of prime firms. This study, using Malmquist data envelopment analysis (DEA), aims to assess the level of operational and financial efficiency and its determinants for ensuring and sustaining excellent performance in 33 Egyptian private hospitals. This study adopted a Malmquist DEA approach to assessing the changes in operational and financial efficiency in Egyptian hospitals. Tobit regression was also used to identify the significant variables affecting their efficiency. In addition, a sensitivity analysis is carried out for model validations.
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Why is it important?
The study sheds light on the value of using DEA to assess efficiency. DEA in the context of emerging economies such as Egypt's can be a useful tool for decision-makers and practitioners in identifying and addressing performance weaknesses and thus supports continuous improvement in performance.
Perspectives
Several studies have adopted the DEA approach to assessing the overall efficiency of hospitals in Europe and the United States. However, in the MENA region, these studies are uncommon. This study is thought to be one of the earliest attempts to assess hospitals' efficiency in Egypt.
Dr. Ahmed Mohamed Habib
Independent Research Unabhangige Finanzmarktanalyse GmbH
Read the Original
This page is a summary of: Measuring the operational and financial efficiency using a Malmquist data envelopment analysis: a case of Egyptian hospitals, Benchmarking An International Journal, July 2020, Emerald,
DOI: 10.1108/bij-01-2020-0041.
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Emerald Publishing Limited
Measuring the operational and financial efficiency using a Malmquist data envelopment analysis: a case of Egyptian hospitals
Measuring the operational and financial efficiency using a Malmquist data envelopment analysis: a case of Egyptian hospitals
Purpose-The efficient use of organizational resources is integral to the existence of prime firms. This study, using Malmquist data envelopment analysis (DEA), aims to assess the level of operational and financial efficiency and its determinants for ensuring and sustaining excellent performance in 33 Egyptian private hospitals. Design/methodology/approach-This study adopted a Malmquist DEA approach to assessing the changes in operational and financial efficiency in Egyptian hospitals. Tobit regression was also used to identify the significant variables affecting their efficiency. In addition, a sensitivity analysis is carried out for model validations. Findings-Out of 33 hospitals, 17 were found inefficient due to the decline in their technical efficiency. Moreover, the total value of the software programs and operational expenses and the total number of employees are common factors affecting both operational and financial efficiency. In addition, the number of physicians significantly affects the hospital's financial efficiency. Practical implications-The study sheds light on the value of using DEA to assess efficiency. DEA in the context of the emerging economy such as Egypt's can be a useful tool for decision-makers and practitioners in identifying and addressing performance weaknesses and thus supports continuous improvement in performance. Originality/value-Several studies have adopted the DEA approach to assessing the overall efficiency of hospitals in Europe and the United States. However, in the MENA region, these studies are uncommon. This study is thought to be one of the earliest attempts to assess hospitals' efficiency in Egypt.
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