Measuring the technical efficiency of inpatient care services in Turkish public hospitals using stochastic frontier analysis

In this study, we measure the technical efficiency of inpatient care services of Turkish public hospitals using Stochastic Frontier Analysis (SFA). In the analysis, cross-sectional data on 495 general hospitals in 2016 are used. According to the parameters estimated with SFA, a hospital with high role group and in a region with a low development index has higher efficiency than those of other hospitals. The contribution of this thesis to the previous studies on hospital efficiency in Turkey is to use case-mix index reflecting the clinical level of all cases in a hospital. We adjust output of inpatient service with case mix index and remove the heterogeneity between cases in order to get better estimates by SFA. After using CMI, it has been observed that the inefficiency parameters of role group of hospital and development index are approach to zero whereas parameter of health index loose its significance.