Measuring the operational and financial efficiency using a Malmquist data envelopment analysis: a case of Egyptian hospitals
Benchmarking: An International Journal
ISSN: 1463-5771
Article publication date: 20 July 2020
Issue publication date: 9 November 2020
Abstract
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 in 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 assess 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 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 assess 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.
Keywords
Citation
Habib, A.M. and Shahwan, T.M. (2020), "Measuring the operational and financial efficiency using a Malmquist data envelopment analysis: a case of Egyptian hospitals", Benchmarking: An International Journal, Vol. 27 No. 9, pp. 2521-2536. https://doi.org/10.1108/BIJ-01-2020-0041
Publisher
:Emerald Publishing Limited
Copyright © 2020, Emerald Publishing Limited