Department of Health Policy and Management, School of Public Health,

Health Sciences University of Mongolia

Promoting public sector efficiency remains an important concern for many governments. Policy makers are increasingly interested in developing performance indicators that measure hospital efficiency. Lacking competitive pressures, traditionally it has been held that the public sector has little inherent incentive to practice efficient behavior. Increasing

importance is being placed on measures of efficiency in hospitals to compare their relative performance given the need to ensure the best use of scarce resources. The objective of the study is to improve evidence-based health policy through measuring the efficiency of public district health departments in Mongolia. Public district health departments with

inpatient care (N=6) were included in the study. The data envelopment analysis (DEA) technique was used to assess efficiency. The DEA model used three inputs and two outputs. Panel year data was used for the analysis. The (VRS) DEA models estimated for the period 2007 to 2010 indicated average technical efficiency scores ranging from 72% to 100% at

the district health departments. This research is expected to help hospital management by providing information on the causes of hospital efficiency and indicating possible improvements in operation. Hospital benchmarking information is also available from the research results which show the experience of specific hospitals. The findings will be helpful for assessing the effectiveness of both national health policy and individual hospital management decisions in the long-term, which can contribute to health care management for future decision making.

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