Analysis of efficiency in public hospitals in Tanzania

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Mzumbe University
For the past two decades, Tanzania has implemented various policies that aim to improve the performance of health sector and health status of every citizen. These efforts and policies had direct impact on improving health sector and achieving Millennium Development Goals (MDGs). Despite various efforts to improve health sector, the sector is still faced with various challenges, one among is inefficiency. The purpose of this study was to estimate efficiency of public hospitals in Tanzania for the year 2016. Specifically, the study sought to determine technical efficiency, scale efficiency and identifying factors influencing efficiency. To achieve the objectives, the study employed Data Envelopment Analysis (SFA), Stochastic Frontier Approach (SFA) and Tobit regression model on secondary data for the regional and district hospitals obtained from the Ministry of Health, Community, Development, Gender, Elderly and Children (MoHCDGEC). The study used medical staff and beds as input variables, and outpatients and inpatients as output variable. Results from DEA revealed that average technical efficiency of district hospitals and Regional referral hospitals was 69.3% and 90.7% respectively while findings from SFA depicted average efficiency score of 58% and 55% for Regional referral hospital and District hospitals respectively. In scale efficiency, 21.05% of District hospitals were efficient and 43.75% of Regional referral hospitals were scale efficient. On the other hand, Tobit regression results revealed that nurse, medical doctors, clinical officers and medical attendant are important factors in hospital production process, and they have influence on efficiency of public hospitals Lastly, the study concludes that Ministry of Health, Community, Development, Gender, Elderly and Children (MoHCDGEC), and other concerned ministries and stakeholders need to take measures to improve efficiency as the study depicted inefficiency in public hospitals. Estimation of efficiency in public hospitals should be conducted regularly and reallocation of resources is necessary to be done in public hospitals.
A thesis submitted in partial fulfillment of the requirements for an award of Masters of Science in Project Planning and Management of Mzumbe University
Public hospitals, Efficiency - public hospitalss, Public hospitals - Tanzania