Efficiency of Healthcare System in India: A Data Envelopment Analysis

Efficiency plays a crucial role in Indian healthcare systems, where limited resources present notable obstacles. This research employs Data Envelopment Analysis to assess healthcare system efficiency across 29 states in India. By utilizing data from the National Health Profile, Rural Health Statistics, and National Family Health Survey, various input variables (per capita health expenditure, nurses per 1000 population, hospitals per 1000 population) and output variables (percentage of inpatients to outpatients, percentage of mothers with four or more antenatal visits, and infant survival rate) were examined. The findings indicate significant disparities in healthcare resource distribution and service outcomes among the states. While some states exhibit effective healthcare provision, a majority fall below desirable efficiency levels due to resource inadequacy or misallocation. States such as Bihar, Goa, Kerala, Madhya Pradesh, Maharashtra, Telangana, Uttar Pradesh, and West Bengal are identified as efficient, while others show inefficiencies that could be rectified through adjustments in resource allocation and service delivery strategies. This study not only provides insights into the current healthcare efficiency status across Indian states but also presents practical recommendations for policymakers and stakeholders to enhance healthcare system effectiveness, ultimately leading to improved health outcomes.