Performance Efficiency of Indian
Private Hospitals Using Data
Envelopment Analysis and
Super-efficiency DEA
Asmita Chitnis
1
Dharmesh K. Mishra
1
Abstract
India is expected to be ranked among the top three healthcare markets in terms of growth by 2020.
The scale and scope for delivery of quality healthcare services demand high levels of service perfor-
mance to provide effective and efficient services to patients. The purpose of this study is to assess the
performance efficiency of Indian private hospitals using data envelopment analysis (DEA) and super-
efficiency DEA. The analysis uses an output-oriented approach with a mix of four inputs and one output
variables to identify the most efficient hospitals. In the first stage, a sample of 25 private hospitals is
evaluated using DEA, and in the second stage, the same sample is analysed using super-efficiency DEA
for discriminating the performance of the efficient hospitals. The results show seven hospitals as the
most efficient ones using DEA in the first stage. Fortis Hospital Ltd emerges as the super-efficient
hospital using super-efficiency DEA analysis in the second stage. The results obtained have managerial
implications and provide the decision maker (DM) the requisite guidance for corrective actions.
Keywords
DEA, hospitals, India, performance, super efficiency
Background
The health condition of citizens affects the productivity level, welfare level and the socio-economic
stability of a country. Increasing the efficiency of healthcare services becomes extremely important for
countries that have a low or medium human development index (HDI). India lies at the lower level of the
HDI, and thus, it becomes imperative for India to provide enhanced levels of healthcare to its citizens
(UNDP, 2015).
Article
Corresponding author:
Dharmesh K. Mishra, Symbiosis Institute of International Business, Symbiosis International (Deemed University), Phase 1, G. No.
174/1, Hinjawadi, Pune 411057, Maharashtra, India.
E-mails: dharmesh.mishra@siib.ac.in; dharmeshmishra@gmail.com
1
Symbiosis Institute of International Business, Symbiosis International (Deemed University), Pune, Maharashtra, India.
Journal of Health Management
1–15
© 2019 Indian Institute of
Health Management Research
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DOI: 10.1177/0972063419835120
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