A descriptive assessment of the production and cost efficiency of general hospitals in Greece

Abstract

This paper focuses on the assessment of alternative aspects of the efficiency of 98 out of 126 hospitals of the Greek national health system. The analysis is directly concerned with the degree of utilisation of resources and the production efficiency of the general hospitals selected. For the measurement of the indices of efficiency, the internationally known method of Data Envelopment Analysis (modified to the particular characteristics of the Greek NHS) was used. The efficiency of Greek hospitals was assessed utilising two alternative conceptual models: one focusing on production and the other on cost efficiency. The results, in both cases, indicated the scope for substantial efficiency improvements. The analysis has sought to discuss the policy implications resulting from the current efficiency status of the hospitals with reference to issues of resource re-allocation and optimal scale size.