Efficiency Across Hospitals in Bangladesh: Results from Stochastic Frontier Analysis

Abstract

The health sector of Bangladesh achieved many of its goals. The sector, however, faces challenges. One major challenge is low efficiency. In a resourcepoor country, inefficiency leads to the waste of available resources widening the financing gap of the health sector. A technically efficient production unit produces a large amount of output with a given amount of inputs using a given state of technology. Technical efficiency of the district hospitals in Bangladesh is measured using the secondary source of data applying stochastic frontier analysis. Results show that the efficiency of some facilities is quite low and there is a mismatch of utilization rate and efficiency levels of the district hospitals. Measures like reducing absenteeism, increasing healthcare demand, and ensuring proper functioning of all inputs should be taken to enhance the efficiency and utilization of the district hospitals.

Social Science Review, Vol. 37(2), Dec 2020 Page 145-159