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KMID : 0926620160210010043
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Korean Journal of Hospital Management
2016 Volume.21 No. 1 p.43 ~ p.50
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Review on Interchangeability between Efficiency Ranking and Profitability Ranking in Public Medical Centers
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Kim Sang-Mi
Lee Hae-Jong
Lee Dong-Won
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Abstract
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The public medical centers are required to make efficient and profitable operation. The efficiency is usually measured by DEA(data envelopment analysis), and profitability is measured by medical income rate. But DEA is measured by relative, not absolute value. So, profitability rate is used alternatively for DEA. This study want to analyze the interchangeability between DEA ranking and medical income rate ranking among public medical centers. The return on total assets is same ranking with DEA on bed number, employee number and total asset, but 60-70% relationship with DEA on bed number and employee number, as input resources. The operating margin is similar ranking with DEA on bed number and employee number, but 50-60% relationship with DEA on bed number, employee number and total asset, as input resources.
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KEYWORD
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Public medical center, Efficiency, Profitability, DEA
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