Secondary health care efficiency in Portugal: a comparative study

Abstract

Objective: This study analysis the efficiency levels of public hospitals in Portugal. The paper explains the health care decentralization process in Portugal (started 1993) and the reforms of corporatization and merging. These ones intended to optimize costs with health care, improving efficiency, and augmenting the access and quality to the health services. Methods: Data Envelopment Analysis was used to estimate and compare the efficiency of 27 hospital units distributed across five administrative regions. In the application of the models four types of variables were used: inputs (total costs), services provided measured by the number of patients attended by case-mix, quality of service provided and access to it, as well as the external environment (demography and epidemiolog) used to homogenize the conditions in which the hospitals operate. Results: The average level of inefficiency, only for inefficient hospitals, is approximately 6%, a value close to that found in the literature. This amount corresponds to about 370 million Euros wasted. Conclusions: Portuguese public hospitals exhibit a considerable average performance. Nevertheless, there are regions with scores larger than the national average and others with poorer outcomes. The diversity found points towards disparities deserving special attention from policy makers and managers.