Military hospitals efficiency evaluation: Application of Malmquist Productivity Index-Data Envelopment Analysis

The main purpose of this study is to look at the development of efficiency and productivity in the military hospital sector of Tehran province, by applying a nonparametric method. The study applied the nonparametric method to assess the efficiency of military hospitals service in Iran, Tehran, over the period 2013-2016. Utilizing non-parametric methodology, Data Envelopment Analysis (DEA) and Malmquist productivity index (MPI), individual hospital efficiency and productivity changes which took place within this period are estimated. The present study helps to understand the productivity and technological change and change in technical efficiency in this area, which is essential for policy making identifying improvement opportunities in resource allocation. The difference in productivity in this study is attributed to technological change rather than technical efficiency change. It was observed that military hospitals did not improve the efficiency with which they employed their inputs (i.e., staff and supplies) over the study period; moreover, the Malmquist Index Productivity increases and decreases interchangeably over the period. They did achieve gains and losses through the application of technologies. These results should be both informative and reassuring to military leaders and citizen alike. The most of past studies have been conducted in developed countries. But this paper provides a thorough study on the productivity growth of health care service in military hospitals in Iran using a non-parametric framework with Malmquist Productivity Index. Using panel data, this paper is the first study in Iran to use the Malmquist Productivity Index with Data Envelopment Analysis that provides new empirical evidence on the long-term trends in the efficiency of military hospitals in Iran.