Evaluating Hospital’s Units Efficiency: An application of Data Envelopment Analysis

Abstract

Data Envelopment Analysis (DEA) is a method based on linear programming that has been extensively applied to measure the relative efficiency of different hospitals, units, organizations, departments etc. There is an increasing  trend of investigating the efficiency and performance level of public sector and non-profit organizations like health 
services sector. In this regard, Data Envelopment Analysis (DEA) approach is proven to be very helpful by examining  the common inputs and outputs for different units. The main aim of this paper is to measure the relative efficiency of different departments of Lady Reading Hospital (LRH) Peshawar by applying DEA technique. Similar inputs and outputs were measured for all the selected six departments of the hospital. Linear program was developed for all inputs and outputs and were put in TORA software. The results obtained from the software proved that all the selected sixunits of hospital were found efficient and it is recommended to maintain the consistency of efficiency and stability.