International Journal of Economics and Finance; Vol. 9, No. 4; 2017 ISSN 1916-971X E-ISSN 1916-9728 Published by Canadian Center of Science and Education 172 Measuring the Efficiency of Health Services Areas in Kingdom of Saudi Arabia Using Data Envelopment Analysis (DEA): A Comparative Study between the Years 2014 and 2006 Sanaa Mohamed Aly Helal & Haga Abdelrahman Elimam 1 Faculty of Economics and Administration, University of King Abdul Aziz, Jeddah, Saudi Arabia Correspondence: Sanaa Mohamed Aly Helal, Prof. Dr., Faculty of Economics and Administration, University of King Abdul Aziz, Jeddah, Saudi Arabia. E-mail: sanhelal@yahoo.com Received: February 15, 2017 Accepted: March 18, 2017 Online Published: March 25, 2017 doi:10.5539/ijef.v9n4p172 URL: https://doi.org/10.5539/ijef.v9n4p172 Abstract The study aimed to assess the efficiency of health services provided by the government hospitals in various districts of the Kingdom of Saudi Arabia. The number of beds at hospitals, doctors, nursing staff and paramedical categories were used as inputs for the model. The average productivity efficiency of government hospitals in the districts of the Kingdom of Saudi Arabia in 2014 was 92.3%; whereas, the average internal production efficiency of these districts in the provision of health services through their respective hospitals was 94.7%; and the average external productivity efficiency in the different cities of the districts in Kingdom of the Saudi Arabia was 97.5%. It has been found that the average overall productivity efficiency was 90.2%, concerning the relative efficiency indicators of government hospitals, which were based on the hospitals‟ distribution of Saudi Arabian districts in 2006. An analysis of the indicator showed that the average production efficiency of the services provided (internally) by the districts of the Kingdom of Saudi Arabia was 94.7%, and that the average of the external production efficiency for such services was 95.4%. The Data Envelopment Analysis is a successful technique in measuring the performance efficiency of hospitals and it also assists to identify possible improvement and reduction in cost. Keywords: data envelopment analysis (DEA), general efficiency, relative efficiency 1. Introduction 1.1 Problem of the Study The Data Envelopment Analysis (DEA) program is considered as one of the constructive programs that contribute to the measurement of the performance efficiency among hospitals. The specification of weaknesses are the areas in the efficiency of using available resources, proposal of optimal allocation of these resources, and increment of efficiency by reducing resources or decreasing outputs (Linna et al., 2006). Therefore, this study aimed to assess the efficiency of health services at Districts of Kingdom of Saudi Arabia, which are provided by the government hospitals (public) in the country. It was divided into 20 districts commencing with Riyadh and ending with Qunfudha (Yearbook, 2014); in addition, to measure the efficiency of the hospitals within each district. 1.2 Importance of the Problem The healthcare services sector in the Kingdom of Saudi Arabia (KSA) has occupied a remarkably distinctive position among the remaining other service sectors. Furthermore, KSA has always been dedicated in considering health services sector as a key objective in all its development plans. However, it has been remarked that it was (and is still) facing challenges, which are represented in the provision of health care for every citizen from one aspect and raising the level of competency of the health care from the other. Therefore, the evaluation of health services and measurement of the hospitals‟ efficiency have become necessity for ensuring the improvement of services quality and optimum utilization of resources allocated for them. Those in charge of hospital ‟s management confront a number of challenges that are not represented only in the provision of health services, but also in elevating the level of efficiency of these services. It happens because these services are directly linked to the health of individuals and their lives; and that the human resource is the foundation for any real economic and social development. Since human development and economic development are two similar aspects, it could