ANALYSIS OF EFFICIENCY LEVEL USING DATA ENVELOPMENT ANALYSIS (DEA) METHOD AT THE INDONESIAN HOSPITALS

Abstract

Every year the population in Indonesia continues to grow, data shows that the population number has increased from 244.78 million in 2016 rose to 258.70 million in 2016 (Pusat Data dan Informasi, 2016). Increasing in population growth requires special attention, especially in terms of health. There are many efforts made by the government to improve the health status of the public, one of them that can be seen with the number of hospitals increased each year and supported with health facilities and services. But in fact, there are still facilities that are not used maximally. Therefore, there are still many –inefficient hospitals. One of the reasons is that not all hospitals have applied operational standards. The objective of this study is to measure the efficiency level of the hospital industry, and to improve the efficiency of hospitals in Indonesia. The efficiency can show the level of hospital industry in Indonesia by using Data Envelopment Analysis (DEA). DEA is one of the non-parametric methods for processing input and output variables used to calculate relative efficiency levels. The study was conducted by relying on output and input data from 2012 to 2016. Measurement of DEA efficiency uses BCC model with input orientation (nurses, physicians, pharmacists, and beds) and output (outpatient visit). The results of this study indicate that there are inefficiencies in 2013 and 2015 where an efficiency level of 99.97 % and 99.98% with input orientation and 99.96 % and 99.97% with output orientation respectively.