Abstract

Measuring performances of the hospitals under Ministry of Health is a must for the efficient use of the resources. To serve this purpose, data envelopment analysis, capable of measuring relative effectiveness of decision units by processing more than one input and output, has been used. By means of data envelopment analysis technique, we have aimed to use the resources efficiently. For this reason, the model has been run input oriented. With the study, effectiveness and profitability measurements were performed in the hospitals under Ministry of Health. For this purpose, by using 2007 data on 5 financial inputs and 1 financial output variables from 16 different hospitals, effectiveness measurement was carried out and profit/loss values of the units were evaluated. According to the results obtained improvement for each unit is described and effects on their profitability are also stated. Considering the profit / loss values of the hospitals, it is concluded that they should cut their expenses at the rate of 10, 43% in order to reach break-even point regarding profit and loss balance.

Key words: Data envelopment analysis, hospitals, performance measurement, financial evaluation.