Technical Efficiency of Public Health Centers: The Case of Addis Ababa and Selected Health Centers of Oromia

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Addis Ababa University


This paper combines Data Envelopment Analysis (DEA) with regression analysis to evaluate the technical efficiency of public health centers in Addis Ababa and selected health centers of Oromia Region. Efficiency is first estimated using DEA with the inputs and outputs Specific to the health centers operations. An OLS and Logit models are then employed in which the efficiency scores obtained from the DEA Computations is used as the dependent variable, and a number of health center operating characteristics are chosen as the independent variables. The DEA results indicate that 60 % of health centers in data set have some degree of technical inefficiency and about 60% were scale inefficient. In the analysis, the input reduction required to make the inefficient health centers technically efficient is also identified. From the OLS and Logit results, location and availability of public health care providing unit (hospital) in the area are significantly associated with efficiency. In conclusion, the DEA results constitute a strong guide to health care decision-making, especially with regard to rational use of health care resources.



Technical Efficiency of Public Health Centers: