Technical Efficiency in Public Hospitals in Kenya: A Two –Stage Data Envelopment Analysis

Francis Kimani Mwihia, James Machoki M’ Imunya, Germano Mwabu, Urbanus M. Kioko, Benson B. A. Estambale

Abstract


The paper uses the DEA technique to estimate efficiency scores in Kenyan public hospitals and then applies the Tobit regression to study inter-hospital variation in the scores. The DEA analysis reveals that small hospitals are more efficient than large hospitals, with efficiency levels ranging from 74-91% in small DMUs and from 57-78% in large DMUs. Tobit regression analysis shows efficiency scores are negatively correlated with the hospital’s distance from the manager’s residence and from the capital city. Internal and external supervisions are suggested as mechanisms for increasing performance of hospitals.


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DOI: https://doi.org/10.5539/ijef.v10n6p141

Copyright (c) 2018 Francis Kimani Mwihia

License URL: http://creativecommons.org/licenses/by/4.0

International Journal of Economics and Finance  ISSN  1916-971X (Print) ISSN  1916-9728 (Online)  Email: ijef@ccsenet.org

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