The efficiency and productivity of Public Services Hospital in Indonesia

Abstract

Objective

The purpose of the study was to assess the level of efficiency and productivity of the BLUD Hospital in South Sulawesi Province during the period of implementation of the National Health Insurance policy in Indonesia.

Methods

This research used Data Envelopment Analysis method to assess the level of hospital efficiency and productivity. The population and sample were 25 BLUD hospitals in South Sulawesi Province. The data analyzed are hospital performance data for the period 2014–2017.

Result

The results found that the average level of efficiency was 1.023. There are 14 hospitals (56%) inefficient and 11 hospitals (44%) efficient. The average hospital productivity growth rate is 4%.

Conclusion

The role of technology, competitive human resources, good management systems, and strong leadership are needed for hospitals to improve their efficiency and productivity level.