Evaluation on the Efficiency of Healthcare Companies in Malaysia with Data Envelopment Analysis Model
DOI: 2399 Downloads 19243 Views
Author(s)
Abstract
Healthcare industry plays an important role in the society and attracts the attention of the public nowadays. Healthcare industry has played a vital role in this world to provide goods and services to enhance quality of life, life expectancy, diagnostic and treatment options as well as the efficiency and cost effectiveness of the healthcare system. The objective of this study is to evaluate and compare the performance efficiency of the healthcare companies in Malaysia with Data Envelopment Analysis (DEA) model. The performance efficiency of the companies is defined as the ratio of sum weighted outputs to sum weighted inputs. In this study, the data consists of 12 healthcare companies in Malaysia from year 2011 to 2015. The results of this study show that ADVENTA and AHEALTH are ranked as efficient healthcare companies and therefore serve as benchmark to other inefficient healthcare companies. The efficiency of the healthcare companies in Malaysia can be determined by using DEA model. This study is significant because it helps to determine the efficient healthcare companies based on multiple inputs and outputs with DEA model.
Keywords
Data Envelopment Analysis, Efficiency, Linear Programming Model, Healthcare Company
Cite this paper
Lam Weng Siew, Liew Kah Fai, Lam Weng Hoe,
Evaluation on the Efficiency of Healthcare Companies in Malaysia with Data Envelopment Analysis Model
, SCIREA Journal of Mathematics.
Volume 1, Issue 1, October 2016 | PP. 95-106.
References
[ 1 ] | Omachonu, V.K. and Einspruch, N.G., 2010. Innovation in Healthcare Delivery Systems: A Conceptual Framework. The Innovation Journal: The Public Sector Innovation Journal, 15(1): 1-20. |
[ 2 ] | Hernandez, P., Tan-Torres, T. and Evans, D.B., 2009. Measuring expenditure on the health workforce: concepts, data sources and methods. Handbook on monitoring and evaluation of human resources for health, Geneva, World Health Organization. |
[ 3 ] | Nunamaker, T.R. and Lewin, A.Y., 1983. Measuring routine nursing service efficiency: A comparison of cost per patient day and data envelopment analysis models. Health Services Research, 18(2): 183-208. |
[ 4 ] | Sherman, H.D., 1984. Hospital Efficiency Measurement and Evaluation: Empirical Test of a New Technique. Medical Care, 22(10): 922-938. |
[ 5 ] | Feroz, E.H., Kim, S. and Raab, R.L., 2003. Financial Statement Analysis: A Data Envelopment Analysis Approach. The Journal of the Operational Research Society, 54(1): 48-58. |
[ 6 ] | Charnes, A., Cooper, W.W. and Rhodes, E., 1978. Measuring the Efficiency of Decision Making Units. European Journal of Operational Research, 2: 429-444. |
[ 7 ] | Kamil, A.A. and Ong, P.L., 2010. Data Envelopment Analysis for Stocks Selection on Bursa Malaysia. Archives of Applied Science Research, 2(5): 11-35. |
[ 8 ] | Al-Shayea, A.M., 2011. Measuring Hospital’s units Efficiency: A Data Envelopment Analysis Approach. International Journal of Engineering & Technology, 11(6): 7-14. |
[ 9 ] | Asandului, L., Roman, M. and Fatulescu, P., 2014. The efficiency of healthcare systems in Europe: a Data Envelopment Analysis Approach. Procedia Economics and Finance, 10: 261-268. |
[ 10 ] | Ulucan, A., 2011. Measuring the Efficiency of Turkish Universities Using Measure-Specific Data Envelopment Analysis. Sosyoekonomi, 7(1): 181-196. |
[ 11 ] | Zbranek, P., 2013. Data Envelopment Analysis as a tool for evaluation of employees’ performance. Acta Oeconomica et Informatica, 16(1): 12-21. |
[ 12 ] | Benneyan, J., Ceyhan, M.E. and Sunnetci, A., 2007. Data envelopment analysis of national healthcare systems and their relative efficiencies. International Conference on Computers and Industrial Engineering, 251-261. |
[ 13 ] | Akazili, J., Adjuik, M., Jehu-Appiah, C. and Zere, E., 2008. Using data envelopment analysis to measure the extent of technical efficiency of public health centres in Ghana. BMC International Health and Human Rights, 8: 11-22. |
[ 14 ] | Mogha, S.P., Yadav, S.P. and Singh, S.P., 2012. Performance Evaluation of Indian Private Hospitals Using DEA Approach with Sensitivity Analysis. International Journal of Advances in Management and Economics, 1(2): 1-12. |
[ 15 ] | Varias, A.D. and Sofianopoulou, S., 2012. Efficiency Evaluation of Greek Commercial Banks Using Data Envelopment Analysis. 4th International Conference on Applied Operational Research, Proceedings, 4: 254-261. |
[ 16 ] | Zamani, L., Beegam, R. and Borzoian, S., 2014. Portfolio Selection using Data Envelopment Analysis (DEA): A Case of Select Indian Investment Companies. International Journal of Current Research and Academic Review, 2(4): 50-55. |
[ 17 ] | Bursa Malaysia, n.d.. Company Announcements | Bursa Malaysia Market. [online] Available at: |
[ 18 ] | Sullivan, A. and Sheffrin, S.M., 2003. Economics: Principles in action. Upper Saddle River, New Jersey: Pearson Prentice Hall. |
[ 19 ] | Mousa, G.A., 2015. Financial Ratios versus Data Envelopment Analysis: The Efficiency Assessment of Banking Sector in Bahrain Bourse. International Journal of Business and Statistical Analysis, 2(2): 75-84. |
[ 20 ] | Stickney, C.P., Weil, R.L., Schipper, K. and Francis, J., 2009. Financial Accounting: An Introduction to Concepts, Methods and Uses. 13th ed. Cengage Learning. |
[ 21 ] | Martic, M.M., Novakovic, M.S. and Baggia, A., 2009. Data Envelopment Analysis – Basic Models and their Utilization. Organizacija, 42(2): 37-43. |