Out of select hospitals, 80% of hospitals were found inefficient using Constant Return to Scale while 70% of the hospitals were found inefficient using Variable Return to Scale.
Authors
Susheel Yadav, Assistant Professor, Jindal Global Business School, O.P. Jindal Global University, Sonipat, India.
Vinaytosh Mishra, College of Healthcare Management and Economics, Gulf Medical University, Ajman, UAE.
Jagroop Singh, College of Healthcare Management and Economics, Gulf Medical University, Ajman, UAE.
Sourabh Kulkarni, FORE School of Management, New Delhi, India.
Summary
Healthcare organizations must operate efficiently to provide affordable care without compromising their sustainability and competitiveness. The purpose of this is to measure the profit efficiency of select Indian Corporate Hospitals during the COVID-19 pandemic. Further, the study attempts to analyze the productivity changes in select corporate hospitals during COVID-19 and postimplementation of the national insurance policy in India.
The study used the Data envelopment analysis (DEA) technique to measure the efficiency of corporate hospitals. It utilizes Constant Return to Scale (CRS), and Variable Return to Scale (VRS) to estimate profit inefficiency. DEA-based Malmquist Productivity Index (MPI) was used to examine the productivity change during the last three years since the outbreak of COVID-19.
The DEA-MPI model is iterated for panel data for Financial Year 2018–2021. with year-wise employee benefits and operating expenses as the input parameters and year-wise net sales as the output parameter. The study reveals surprising results and requires critical analysis. Out of select hospitals, 80% of hospitals were found inefficient using CRS while 70% of the hospitals were found inefficient using VRS. The findings of this study are useful for healthcare administrators and managers to highlight improvement programs for efficiency maximization.
Published in: International Journal of Healthcare Management
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