EURO 2024 Copenhagen
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3141. Performance of private healthcare sector and the role of public policy: A study of India using Data Envelopment Analysis and Gradient Boosted Trees

Invited abstract in session MB-17: DEA in healthcare, stream OR in Health Services (ORAHS).

Monday, 10:30-12:00
Room: 40 (building: 116)

Authors (first author is the speaker)

1. Aishna Sharma
Economics and Public Policy, Shiv Nadar Institute of Eminence deemed to be University
2. Rahul Nair
IBM Research - Ireland

Abstract

The demand for healthcare services provided by Indian private hospitals has increased, which makes it imperative to assess their performances. We also assess the impact of public spending and governance on their performances.
We first estimate output oriented and input oriented technical efficiency scores of 163 private hospitals for the year 2022-23 using Data Envelopment Analysis. Expenditure on compensation of employees of hospitals, on power, fuel & water, on repairs and maintenance and Net Fixed Assets are inputs, with Total Income as output. After this, we estimate Gradient-Boosted Tree Classifier (GBTC) taking output efficiency score as dependent variable and public spending and governance factors as independent variables. Results show, on an average, the output oriented technical efficiency score is 0.66 and the input oriented score is 0.64. Big hospitals outperform small hospitals by 16 percentage points. Extent of misutilisation or underutilization of financial resources is greater than the extent of inadequacy of services delivered by the hospitals. In GBTC analysis, with output oriented scores as dependent variable, the most important features with a Mean Decrease in Impurity greater than 0.1 are Voice and Accountability score, Revenue Expenditure on Education, Revenue Expenditure on Water supply and sanitation and Revenue Expenditure on Urban Development. We recommend better governance structure; increased public spending and periodic audits of private hospitals

Keywords

Status: accepted

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