Comparative Efficiency Analysis of Public and Private Hospitals in Colombia

Introduction: We measure healthcare efficiency using the data envelopment analysis (DEA) method to identify strategic priority areas in healthcare processes. The analysis compares the efficiency of public and private hospitals at the highest level of complexity, namely those with the most advanced technology, surgical services, emergency services, specialized consultations, extensive and adequate infrastructure, and the capacity to provide specialized medical services. Objective: To conduct a comparative efficiency analysis of public and private hospitals in Colombia. Methods: The method used is DEA, one of the most widely used and effective methodologies for measuring results of interest to the management of public and private hospitals. The Shapiro methodology is a tool that allows the data used in this research to be validated. A stochastic frontier analysis (SFA) is also conducted, indicating that the adjusted model is robust and reliable. The methodology for selecting public and private hospitals is based on the high level of complexity and the greater number of beds in each hospital, given that these hospitals have the greatest impact on healthcare service costs. Results: This methodology shows that it differentiates the behavior of various public and private institutions. It is characteristic that some public hospitals are closer to the efficient frontier compared to private hospitals. The basic input and output variables of the study are: installed capacity (number of beds per hospital); the overall cost of the general social security system; the number of outpatient visits; the number of hospital emergencies; the number of hospital discharges; and the rate of patient re-admissions within 15 days. Conclusions: It is important to measure healthcare efficiency in order to improve medical care processes. This study makes an important contribution to evaluating hospital efficiency and provides a solid foundation for developing alternatives to improve healthcare efficiency within the healthcare system.