Measuring hospital efficiency using DEA an investigation into the relationship between scale and efficiency within the South African private hospital environment

Master Thesis

2013

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University of Cape Town

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This paper investigates the relationship between scale and efficiency through the application of Data Envelopment Analysis (DEA) to a set of South African private hospitals over the three year period from 2007 to 2009. As part of the investigation, this paper provides a description of the current research into scale and efficiency with a focus on definition and measurement. It also provides an introduction to DEA as a tool for measuring the relationship between hospital scale and efficiency. Based on the underlying set of private hospitals, this investigation found that scale efficiency improvements are likely to be possible.
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