Evaluation and analyses on profitability ? efficiency in the Ministry of Health Hospitals

l Graduate School of Social Sciences Department of Business Administration Hospital Management Program Post-graduate Thesis, Ankara, 2009. Resources for whichever sector are necessary to be used in the most efficient manner since they are in short supply. Besides, health sector, due to characteristic of the service it provides and rapidly changing and developing opportunities, has become a field, in which high level of sourcing is present. It became more of an issue that top quality services are to be offered in the most productive way in health sector where expectations of the society has been particularly increased.Measuring performances of the hospitals belonging to Ministry of Health that has the biggest share in health service provision in our country and determination of ameliorations needed to be done accordingly are sine qua non for efficient use of resources. To that end, effectiveness measurements in hospitals and their units have been done and hospitals have been evaluated on both general and unitary basis thereby. Thus, managerial staffs in all levels are provided with financial information on their performances and performance ameliorations.For effectiveness measurement, Data Envelopment Analysis (DEA) that is capable of measuring relative effectiveness of decision units by processing more than one input and output has been used. By means of DEA technique, we have aimed resources to be used efficiently and to base on services provided thereby. For this reason, the model has been run input oriented.With this study, effectiveness and profitability measurements were performed in the hospitals belonging to Ministry of Health and in their units. It has been considered that particular inclusion of the hospital units to the study will be instructive for hospital managers. For this purpose, by using 2007 data on 5 financial input and 1 financial output variables from 21 different units, effectiveness measurement was carried out as well as profitability / mal efficiency values of the units were evaluated. According to the results attained, how much amelioration in which resource is needed for each unit that is not effective is described and effects on their profitability are also stated.It is ascertained that 13.43% idle expenditure has been done on the basis of 16 hospitals within the context of the study. Considering also profitability / mal efficiency values of the hospitals, it is conclude that they should cut their expenses in the rate of 10.43% in order to reach break-even point regarding profit and loss balance.Along with above statements, it is apparent that social responsibility of hospitals comes before their profitability for the sake of the service being provided. However, this aspect should not mean that hospitals are not supposed to use their resources efficiently. Finally, it is considered that use of non-financial data along with financial data will give more accurate results in measuring hospital performance.Key Words1.Data Envelopment Analysis2.Hospitals3.Efficiency4.Profitability5.Performance Measurement.