Measurement of Efficiency and Productivity Growth of Hospital Systems: A Indian Case Study

The increased importance of the healthcare sector over the last two decades and current concern over productivity growth have stirred interest in productivity and efficiency measures in this expanding sector of the economic system. Productivity in economic position is determined as the relation between output and input. Productivity concept in manufacturing is analysed in the scope of the organization, but in the service sector like in hospital, this arena is larger and needs an external portion of the organizational position as patients. This paper deals with the measurement of efficiency and productivity growth of the hospital systems. To measure productivity and efficiency of an Indian hospital system, the Malmquist productivity index is applied, based on the data envelopment analysis (DEA). The efficiency and productivity of several departments of the given hospital are analysed and the improvement alternatives also identified.