Technical and Relative Efficiency Assessment of Some Private Sector Hospitals in India

This paper measures technical and relative efficiencies of some private sector hospitals in India. The study makes an attempt to provide an overview of the general status of the hospitals. Data Envelopment Analysis (DEA)-CCR and BCC models have been applied for the Input-output data collected from 15 hospitals for the year 2009-2010. The study found that out of 15 hospitals, 2 hospitals are technically efficient and 8 hospitals are pure technically efficient. Assessment of technical efficiency concludes that the performance of hospitals is good but still very far from the optimal level. On average, a technical inefficient hospital may reach on the efficiency frontier if it is able to increase its output by 30.20%. The mean value of OTE (60.80%) indicates that on average a hospital to be efficient has to produce 39.20% more output with the same level of inputs.