Incorporating the Financial Variables Using Two Step DEA Efficiency Evaluation: Case Study of Slovak Gynaecology Departments
Incorporating the Financial Variables Using Two Step DEA Efficiency Evaluation: Case Study of Slovak Gynaecology Departments

Author(s): Zuzana Hajduová, Roman Lacko, Tibor Bobenič
Subject(s): National Economy, Business Economy / Management, Methodology and research technology, Health and medicine and law, Accounting - Business Administration
Published by: Masarykova univerzita nakladatelství
Keywords: DEA; departments; efficiency; truncated regression; two step DE;
Summary/Abstract: One of the available approach to improve performance of healthcare facilities is Data envelopment analysis - DEA. This method with its variations and supplementary methods, such as regression models, is widely used in many countries of the world. Financial indicators are often included in DEA models. We excluded them from DEA analysis and we included them into second step of two step DEA. This has helped us to determine the impact of these financial indicators on efficiency of gynaecological departments in 8 regions of Slovak republic. We have selected following financial variables: Material costs, Operational Costs and Total revenues. Two step DEA analysis, using truncated regression, shows that these indicators are not suitable to determine efficiency of selected departments.

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