An Approach Toward Public Hospital Performance Assessment

6 Pages Posted: 19 Jun 2017

See all articles by Vitalis Chukwudi Nwagbara

Vitalis Chukwudi Nwagbara

University of Malaya (UM)

Rajah Rasiah

University of Malaya

Md Aslam Mia

University of Malaya (UM)

Date Written: August 03, 2016

Abstract

Background: Public hospitals have come under heavy scrutiny across the world owing to rising expenditures. However, much of the focus has been on cutting down costs to raise efficiency levels. Although not denying the importance of efficiency measures, this article targets a performance issue that is relevant to address the quality of services rendered in public hospitals. Thus, it is important to focus on the effectiveness of resource utilization in these hospitals. Consequently, this article seeks to examine the impact of average length of stay (ALOS) and bed turnover rates (BTR) on bed occupancy rates (BOR).

Methods: Public hospital inpatient utilization records during the period 2006 to 2013 were gathered from the Ministry of Health, Malaysia. A 2-step generalized method of moments (GMM) statistical method was used to analyze the data. BOR was adopted as the dependent variable, whereas BTR and ALOS were used as the explanatory variables. The logarithm of total bed count (BED), admission (ADM), and patient days (PD) was deployed as control variables. Three regression models were developed to explore the correlates of BOR as a hospital performance measure. Ethics committee approval was waived because no patients were identified in the study.

Results: The statistical analyses show that ALOS and BTR are inversely correlated with BOR, with both coefficients significant at 1%. The control variables of BED, ADM, and PD had the right positive signs and they were significant in both sets of equations. Hence, reducing ALOS and BTR can help raise performance of public hospitals in Malaysia.

Conclusion: In light of the robust results obtained, this study offers implications for improving public hospital performance. It shows a need to reduce ALOS and BTR in public hospitals to improve BOR.

Keywords: health care policy, Malaysia, performance, public hospitals, utilization

JEL Classification: I18

Suggested Citation

Nwagbara, Vitalis Chukwudi and Rasiah, Rajah and Mia, Md Aslam, An Approach Toward Public Hospital Performance Assessment (August 03, 2016). Available at SSRN: https://ssrn.com/abstract=2988441 or http://dx.doi.org/10.2139/ssrn.2988441

Vitalis Chukwudi Nwagbara (Contact Author)

University of Malaya (UM) ( email )

Kuala Lumpur, Wilayah Persekutuan 50603
University of Malaya (UM)
Kuala Lumpur, Wilayah Persekutuan 50603
Malaysia

Rajah Rasiah

University of Malaya ( email )

University of Malaya
Faculty of Economics and Administration
Kuala Lumpur, Wilayah Persekutuan 50603
Malaysia
60379673606 (Phone)
60379673719 (Fax)

Md Aslam Mia

University of Malaya (UM) ( email )

Kuala Lumpur, Wilayah Persekutuan 50603
University of Malaya (UM)
Kuala Lumpur, Wilayah Persekutuan 50603
Malaysia

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
16
Abstract Views
213
PlumX Metrics