Technical and Scale Efficiency
of Inpatient Services in District
Hospitals in Kerala during 2014-2019
P Devika* and S Sandhya**
PUBLISHED : 25 JUNE 2024
Abstract
The paper estimates the technical and scale efficiencies of district hospitals in Kerala between
2014 and 2019 using input-oriented Data Envelopment Analysis (DEA) under both Constant
Returns to Scale (CRS) and Variable Returns to Scale (VRS). The output was inpatient
admissions (IPD) and the inputs were beds, doctors, and nurses. A sensitivity analysis was
also performed for both CRS and VRS models. The results of the sensitivity and scale analyses
showed that the VRS approach with increasing returns to scale better explained the relationship
between inpatient admissions and inputs among district hospitals in Kerala. Further, in the
VRS approach, a comparison of average efficiency scores over the years shows that efficiency
declined from 0.69 in 2014 to 0.63 in 2019. Along with this, inpatient admissions rose from
28,531 in 2014 to 37,103 in 2016, thereafter declining to 26,208 in 2019. Both these facts
implied that the public health sector reforms initiated in Kerala since 2016 were not very
effective in either attracting more inpatient admissions or increasing the technical efficiency of
district hospitals in its initial phase.
Key Words
Constant returns to scale (CRS), Data Envelopment Analysis (DEA), District
hospitals, Inpatient admissions (IPD), Kerala, Variable Returns to Scale (VRS)
Author Biography
P Devika Ph.D. candidate, School of Economics, University of Hyderabad, Telangana, India-500046.
E-mail:
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S Sandhya Professor (Retired), School of Economics, University of Hyderabad, Telangana, India-500046.
E-mail:
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