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Evaluating the Efficiency of Public Medical Services: An Application of the Bootstrap Data Envelopment Analysis Model to Local Medical Centers in Korea

  • Korean Society and Public Administration
  • Abbr : KSPA
  • 2010, 21(2), pp.117-140
  • Publisher : Seoul Association For Public Administration
  • Research Area : Social Science > Public Administration

Yoo, Keum-Rok 1

1군산대학교

Accredited

ABSTRACT

Using a bootstrap data envelopment analysis, this study measured the efficiency of public medical services with application to thirty four local medical centers in Korea in 2007, and then analyzed the effect on efficiency of environmental variables using truncated regression analysis. The bootstrapped bias-corrected efficiency scores of local medical centers indicated to be 14.81% lower than efficiency scores measured by the conventional data envelopment analysis model. The result of adjusting for the effect of environmental variables such as population and financial self-reliance ratio on the efficiency scores of local medical centers shows that the ranking of efficiency greatly changed, as compared with those being not accounted for environmental variables. The implications of this paper are as follows. First, bootstrap data envelopment analysis needs to be used to measure the efficiency of the public sector including local medical centers. Second, both financial solvency and transparency measures as well as a profitability measure should be included as outputs of local medical centers. Third, the truncated regression model needs to be utilized to examine factors affecting efficiency together with the measurement of bootstrapped bias-corrected efficiency scores. Fourth, the efficiency of local medical centers should be corrected for the effect of environmental variables.

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