Measuring Performance, Estimating Most Productive Scale Size, and Benchmarking of Hospitals Using DEA Approach: A Case Study in Iran

Background and Objectives: The goal of current study is to evaluate the performance of hospitals and their departments. This manuscript aimed at estimation of the most productive scale size (MPSS), returns to scale (RTS), and benchmarking for inefficient hospitals and their departments. Methods: The radial and non-radial data envelopment analysis (DEA) approaches under variable returns to scale (VRS) assumption are applied for performance assessment of hospitals. Also, the MPSS model in DEA is employed to identify hospital with optimal scale size. Furthermore, the benchmarking for inefficient decision making units (DMUs) is introduced using the slack based measure (SBM) model. Results: In this manuscript, the DEA approaches are implemented at macro and micro levels in health care. At macro level, the performance of 15 Iranian hospitals is assessed and at micro level, the performance of 15 departments of one hospital is evaluated. It should be noted that the number of staff, the number of beds, location & infrastructures, and equipment & facilities were considered as the input variables and number of patients and number of surgeries were selected as output variables. According to the results, six hospitals at macro level and seven hospital departments at micro level were efficient. As a result, these hospitals and departments can be considered as a benchmark for other DMUs. Notably, only four hospitals at macro level and four hospital departments at micro level have the most productive scale size. Conclusions: The current study presents a functional pattern to managers at macro and micro levels in health care systems to better planning for capacity development and resource saving.