ABSTRACT

This study evaluates technical efficiency and productivity change of 10 public and 53 private Korean university hospitals in 2002-2006 with DEA(Data Envelopment Analysis) methodology. By employing three different concepts of efficiencies, human, inpatient, and outpatient efficiencies, we found the followings: First, public university hospitals show higher technical efficiency in all three efficiency concepts than private ones in 2006. Second, public and private ones show a -convergence in human, and -divergence and -convergence in outpatient efficiency. This illustrates that university hospitals have higher efficiency level in human efficiency category, while there had been a downward standardization in outpatient efficiency of the university hospitals due to the polarization phenomenon in size, capital, and technology in 2002-2006. Private ones also seem to have higher Malmquist index, or productivity in all three efficiencies. Thus, from a policy perspective, this study sheds light on the importance of establishing more hospital-specific policies to address inefficiency and low productivity in Korean university hospitals.

KEYWORD

University hospitals, Efficiency, Productivity, Malmquist, DEA (Data Envelopment Analysis)

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