Original scientific paper
https://doi.org/10.1080/1331677X.2020.1772844
Financial performance–efficiency nexus in public health services: A nonparametric evidence-based approach
Danijela Rabar
Mirjana Grčić
Antonija Petrlić
Abstract
Public health services, as a preventive aspect of health care, are
essential for the sustainability of the entire health care system.
However, the context of public health services, which focus is primarily
on prevention, is not a common setting when measuring
the efficiency within nonparametric evidence-based approach.
The aim of this study is to measure the efficiency of the financial
performance of organizational units of the public health institute
in Croatia, the Health Ecology Department in particular, during
the period 2016–2018 using data envelopment analysis. Among
the many reasons behind choosing this nonparametric method is
the fact that it identifies the sources of inefficiency and specifies
the directions and magnitudes of improvements required. Two
input-oriented models – CCR under constant and BCC under variable
returns-to-scale assumption – are employed for evaluating
three types of efficiency – technical, pure technical and scale efficiency.
Two hypotheses are examined and empirically confirmed:
first, that there is significant between-unit variability in financial
performance, and second, that investments are the major source
of inefficiency among the observed indicators. The results have
additionally revealed that the mentioned differences are less pronounced
in the case of pure technical efficiency, implying that
the overall inefficiency of the Health Ecology Department units
can be generally attributed to scale efficiency. Besides, only three
out of twelve department units are considered efficient. The
implications of the research results are aimed at further research
and testing the efficiency of the entire network of public health
institutes, as well as to provide policy makers with new insights
when considering different modes of organizing and delivering
public health services.
Keywords
Public health services; ecology; financial performance; efficiency; data envelopment analysis
Hrčak ID:
254711
URI
Publication date:
9.2.2021.
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