Analysis of the technical efficiency of the forms of hospital management based on public-private collaboration of the Madrid Health Service, as compared with traditional management

Int J Health Plann Manage. 2019 Jan;34(1):414-442. doi: 10.1002/hpm.2678. Epub 2018 Oct 10.

Abstract

Fundamentals: The study aims to carry out a comparative analysis of the technical efficiency of hospital management based on public-private collaboration, as compared with traditional management. Specifically, we compare traditionally managed public hospitals, public hospitals managed by a private finance initiative (PFI), public hospitals managed through a public-private partnership (PPP), and hospitals managed through other forms of management, during the period 2009 to 2014, in the hospitals dependent on the Madrid Health Service (SERMAS).

Methods: The study covers all publicly owned general hospitals under SERMAS, consisting of seven PFI hospitals, three PPP hospitals, 11 traditionally managed public hospitals (with the category of general hospital), and four hospitals managed through other forms of hospital management. The technical efficiency indices of the hospitals were calculated using the data envelopment analysis technique. Subsequently, a sensitivity analysis was performed by bootstrapping and variation of model variables to verify their impact on efficiency. Finally, an analysis of the evolution of efficiency in the analyzed period was carried out using the Malmquist Index.

Results: In all the analysis models carried out in the analyzed period, the hospitals managed based on public-private collaboration were more efficient than the hospitals under traditional management.

Conclusions: The greater efficiency of hospitals managed based on public-private collaboration, as compared with traditional management, could be attributed to greater organizational and management flexibility.

Keywords: data envelopment analysis (DEA); hospital management; organizational innovation; public policies; technical efficiency.

MeSH terms

  • Efficiency, Organizational* / statistics & numerical data
  • Hospital Administration / standards*
  • Hospitals, Private / organization & administration*
  • Hospitals, Public / organization & administration*
  • Models, Organizational
  • Ownership
  • Public Policy
  • Public-Private Sector Partnerships / organization & administration*
  • Spain