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KBS 2019 Spring Series of Research Seminars - Niall Devitt ‘Estimation of technical efficiency of Irish public hospitals using monthly panel data’

The KBS 2019 Spring Series of Research Seminars continues Tuesday 2 April at 1pm in KB1-15 with a presentation by Niall Devitt ‘Estimation of technical efficiency of Irish public hospitals using monthly panel data’ All Welcome

The escalation of ‘record’ numbers of patients being treated on trolley beds has become a long-established trend in the Irish public hospital system.  Moreover, the elderly population in Ireland continues to accelerate, and this will add further and considerable pressure to a health system which is clearly struggling with current demand, whilst also imposing a higher financial burden on future generations.  With these issues in mind, the aim of this study is to measure the input-oriented technical efficiency of Irish public hospitals using a unique monthly panel data set with multiple outputs and inputs for 49 acute hospitals during the period from July 2017 to June 2018 (565 observations).  This novel data set was acquired through public sources as well as directly from the Business Information Unit of the Health Service Executive (HSE) in Ireland.  To measure the inefficiency of the hospitals, both the non-parametric DEA and semi-parametric bootstrap DEA techniques are applied.  As expected, we find notable differences in the efficiency results depending on the method chosen.  The conventional DEA average technical efficiency score for Irish hospitals is 78%, compared to 74% for the bootstrap DEA approach.  We also find considerable scale inefficiencies for the Irish public hospitals sector.  In addition, the chosen methods account for the simultaneous investigation of potential factors that determine efficiency.  These factors include hospital size, the hospital management group and various quality measures as well as environmental indicators.

Niall Devitt, Marta Zieba, Declan Dineen