Technical Efficiency of Public Health Centers: The Case of Addis Ababa and Selected Health Centers of Oromia
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Date
2002-07
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Addis Ababa University
Abstract
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.
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Technical Efficiency of Public Health Centers: