Technically inefficient hospitals could have become more efficient by increasing the outpatient department visits by 45,943 and inpatient days by 31,425 without changing the total number of inputs. The average variable returns to scale (Pure) technical efficiency score was 91.4 % and the average scale efficiency score was 87.1 % while the average constant returns to scale technical efficiency score was 79.4 %. Using a Tobit model DEA, efficiency scores were regressed against selected institutional and contextual/environmental factors to estimate their impacts on efficiency. We assumed an output-oriented model with Variable Returns to Scale to estimate the efficiency score for each hospital using Data Envelopment Analysis (DEA) with STATA13. Input and output data were obtained from the Uganda Ministry of Health annual health sector performance report for the period Jto Jfor the 14 public sector regional referral and 4 large private not for profit hospitals. This was a cross sectional study using secondary data. This paper explores the technical efficiency of referral hospitals in Uganda during the 2012/2013 financial year. ![]() Improving the technical efficiency of hospitals in Uganda can result in large savings which can be devoted to expand access to services and improve quality of care. Hospitals represent a significant proportion of health expenditures in Uganda, accounting for about 26 % of total health expenditure.
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