Efficiency analysis of Oriental hospitals according to characteristics

한방병원 특성별 경영효율성 분석

  • Kim, Young-Sik (Korea Health Industry Development Institute) ;
  • Lee, Woo-Chun (Dept. of Health Policy and Management, Sangji University)
  • 김영식 (한국보건산업진흥원) ;
  • 이우천 (상지대학교 의료경영학과)
  • Received : 2017.02.03
  • Accepted : 2017.05.12
  • Published : 2017.05.31


This study analyzes the efficiency of oriental hospitals using DEA(Data Envelopment Analysis). The input variables include the numbers of doctors, nurses, medical technicians, and beds. The output variable iscomprised of the sales account. The analysis tools used are EnPas and IBM SPSS Statistics 19. As a result of efficiency analysis, the private hospitals(establishment), less than 10 years in operation(operating period), containing less than 50 beds (number of the beds), located in the metropolitan area(location) showed high efficiency in the BCC(Banker, Charnes & Cooper) model, but indicated relatively low efficiency in CCR(Charnes, Cooper & Rhodes) model. This contradictory result is caused by inefficiencies in hospital size. The logistic regression analysis conducted to analyze the variables that affect the efficiency of oriental hospitals found that the efficiency decreased by 0.955 with each increase of 1 bed in the hospital.


DEA;Efficiency;Oriental hospital;Sales account


  1. KHIDI, "2014 Yearbook of health industry", Chungbuk: Korea Health Industry Development Institute, 2015.
  2. W. C. Lee, "Relations between the financial ratios and the management performance in oriental medicine hospital", APJBVE, vol. 7, no. 2, pp. 35-44, 2012.
  3. KHIDI, "2014 Statistics For Hospital Management", Chungbuk: Korea Health Industry Development Institute, 2015.
  4. R. D. Banker, A. Charnes, W. W. Cooper, "Some models for estimating technical and scale inefficiencies in data envelopment analysis", Management Science, vol. 30, no. 9, pp. 1078-1092, 1984. DOI:
  5. S. H. Kim, T. S. Choi, D. W. Lee, "Efficiency analysis", Seoul: Seoul Economy Business Management, 2007.
  6. K. S. Yoon, S. K. Shin, H. N. Han, "Analyzing Private University Hospitals Management Efficiency in Korea: A DEA Approach", Management Education Review, 55, 143-167. 2009.
  7. J. D. Lee, D. H. Oh, "Theory of efficiency analysis: DEA", Seoul: Jipill Media, 2012.
  8. B. S. Park, "Analysis on hospital management performance using the DEA efficiency and profitability indices", Doctoral dissertation, Hanyang university, 2010.
  9. J. W. Yun, "Research for the measurement of efficiency for the medical personnel of the korean university hospital", Master's dissertation, Korea university, 2002.
  10. J. Y. Kim, "Efficiency analysis of general hospitals according to hospital characteristics", Master's dissertation, Korea university, 2014.
  11. M. K. Choi, S. S. Moon, C. S. Yun, J. H. Kim, "The financial structure and profitability comparison of private hospitals and corporate hospitals in Korea", Journal of Health Science & Medical Technology, vol. 32, no. 1, pp. 1-12, 2006.
  12. J. O. Park, B. H. Choi, B. M. Lim, "Management efficiency evaluation of korean medicine hospitals by data envelopment analysis model", SPKOM, vol. 17, no. 3, pp. 103-114, 2013.
  13. KHIDI, "Survey for oriental medicine utilization and medications consumption", Chungbuk: Korea Health Industry Development Institute, 2014.
  14. I. W. Ann, "An investigation of factors affecting management efficiency korean general hospitals", Doctoral dissertation, Inje university, 2004.
  15. B. S. Park, Y. S. Kim, Y. K. Lee, "Analysis on hospital management performance using the DEA efficiency and profitable indices", Korean Public Health Research, vol. 35, no. 2, pp. 63-73, 2009.
  16. KOSIS., "Regional health care utilization statistics: Status of medical institutions", 2013.