Evaluation of technical efficiency of county referral hospitals in kenya and its determinants

Background: Kenya's gross national income per capita of $ 2250 is significantly lower than the global average of $ 6977. In addition, Kenya Government's health expenditure as a percent of the total government budget is approximately 7% which falls below the target of 15% recommended by the...

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Main Authors: Gilbert Koome Rithaa, George Kosimbei, Andrew Yitambe, Peter Kithuka
Format: Article
Language:English
Published: Wolters Kluwer Medknow Publications 2019-01-01
Series:International Journal of Advanced Medical and Health Research
Subjects:
Online Access:http://www.ijamhrjournal.org/article.asp?issn=2349-4220;year=2019;volume=6;issue=1;spage=24;epage=31;aulast=Rithaa
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author Gilbert Koome Rithaa
George Kosimbei
Andrew Yitambe
Peter Kithuka
author_facet Gilbert Koome Rithaa
George Kosimbei
Andrew Yitambe
Peter Kithuka
author_sort Gilbert Koome Rithaa
collection DOAJ
description Background: Kenya's gross national income per capita of $ 2250 is significantly lower than the global average of $ 6977. In addition, Kenya Government's health expenditure as a percent of the total government budget is approximately 7% which falls below the target of 15% recommended by the World Health Organization. It is, therefore, important that the country's health-care resources, specifically those allocated to the health sector, are optimally used. Methods: An one-stage data envelopment analysis (DEA) method was used to estimate the technical efficiency of county referral hospitals. A total of 34 county referral hospitals were randomly sampled and studied. Data analysis was performed in two stages as follows: first, input and output data were entered into MS Excel sheet after which DEA version 2.1 was used to determine the technical efficiency scores for the hospitals. In the second stage, interval regression analysis using censored interval regression model was used to identify determinants of technical efficiency for the sampled hospitals. Results: Results indicated that the mean constant return to scale technically efficient score was 82.4%, the mean variable return to scale (VRS) technically efficient score was 94.1%, and the mean scale efficiency technical score was 87.4%. The mean level of VRS technical inefficiency was 17.2%. The total inputs slacks in the inefficient hospitals were 104 beds and 840 staff which represented an input slack of 4% for the beds and 28% for the staff. Conclusions: Inefficient hospitals could have attained efficient frontiers using fewer resources, specifically 4% beds and 28% staff. The technical inefficiencies in county referral hospitals are occasioned by the use of inappropriate production functions characterized by the existence of excess production inputs and suboptimal outputs.
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spelling doaj.art-8c73b57b3a4f4e76905af0a7179d30d12022-12-22T03:32:52ZengWolters Kluwer Medknow PublicationsInternational Journal of Advanced Medical and Health Research2349-42202350-02982019-01-0161243110.4103/IJAMR.IJAMR_80_18Evaluation of technical efficiency of county referral hospitals in kenya and its determinantsGilbert Koome RithaaGeorge KosimbeiAndrew YitambePeter KithukaBackground: Kenya's gross national income per capita of $ 2250 is significantly lower than the global average of $ 6977. In addition, Kenya Government's health expenditure as a percent of the total government budget is approximately 7% which falls below the target of 15% recommended by the World Health Organization. It is, therefore, important that the country's health-care resources, specifically those allocated to the health sector, are optimally used. Methods: An one-stage data envelopment analysis (DEA) method was used to estimate the technical efficiency of county referral hospitals. A total of 34 county referral hospitals were randomly sampled and studied. Data analysis was performed in two stages as follows: first, input and output data were entered into MS Excel sheet after which DEA version 2.1 was used to determine the technical efficiency scores for the hospitals. In the second stage, interval regression analysis using censored interval regression model was used to identify determinants of technical efficiency for the sampled hospitals. Results: Results indicated that the mean constant return to scale technically efficient score was 82.4%, the mean variable return to scale (VRS) technically efficient score was 94.1%, and the mean scale efficiency technical score was 87.4%. The mean level of VRS technical inefficiency was 17.2%. The total inputs slacks in the inefficient hospitals were 104 beds and 840 staff which represented an input slack of 4% for the beds and 28% for the staff. Conclusions: Inefficient hospitals could have attained efficient frontiers using fewer resources, specifically 4% beds and 28% staff. The technical inefficiencies in county referral hospitals are occasioned by the use of inappropriate production functions characterized by the existence of excess production inputs and suboptimal outputs.http://www.ijamhrjournal.org/article.asp?issn=2349-4220;year=2019;volume=6;issue=1;spage=24;epage=31;aulast=RithaaCounty referral hospitalsdata envelopment analysisscale efficiencytechnical efficiency
spellingShingle Gilbert Koome Rithaa
George Kosimbei
Andrew Yitambe
Peter Kithuka
Evaluation of technical efficiency of county referral hospitals in kenya and its determinants
International Journal of Advanced Medical and Health Research
County referral hospitals
data envelopment analysis
scale efficiency
technical efficiency
title Evaluation of technical efficiency of county referral hospitals in kenya and its determinants
title_full Evaluation of technical efficiency of county referral hospitals in kenya and its determinants
title_fullStr Evaluation of technical efficiency of county referral hospitals in kenya and its determinants
title_full_unstemmed Evaluation of technical efficiency of county referral hospitals in kenya and its determinants
title_short Evaluation of technical efficiency of county referral hospitals in kenya and its determinants
title_sort evaluation of technical efficiency of county referral hospitals in kenya and its determinants
topic County referral hospitals
data envelopment analysis
scale efficiency
technical efficiency
url http://www.ijamhrjournal.org/article.asp?issn=2349-4220;year=2019;volume=6;issue=1;spage=24;epage=31;aulast=Rithaa
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