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Health Services and Outcomes Research Methodology

, Volume 19, Issue 4, pp 215–240 | Cite as

Evaluating efficiency of English acute foundation trusts under system reform: a two-stage DEA approach

  • Khanh Quoc ThaiEmail author
  • Masayoshi Noguchi
Article
  • 43 Downloads

Abstract

The English healthcare sector underwent extensive system reform over the period from 2010 to 2015, aimed principally at improving technical efficiency. This paper examines the effect of the reforms on foundation trusts in England with particular emphasis on technical efficiency. By employing data envelopment analysis (DEA) and a second-stage regression, we found evidence of an overall improvement in efficiency, notwithstanding some fluctuations. Specifically, we found that bed utilization had positive and statistically significant association with the efficiency of acute foundation trusts; suggesting that better management of patient flows and bed utilization might be expected to improve hospital efficiency. We also found evidence to suggest that efficiency might also be improved through better management of staff numbers, optimizing liquidity, and better utilization of assets such as buildings and information technology.

Keywords

Efficiency Data envelopment analysis (DEA) Two-stage analysis English foundation trusts Hospital bed occupancy 

Notes

Acknowledgments

The authors would like to show our gratitude to Professor Paul Rouse, University of Auckland, New Zealand, and Dr. Joseph Drew, University of Technology Sydney, Australia and the two anonymous reviewers for their dedicated assistance and constructive comments that greatly improved the quality of the manuscript.

Funding

This study was funded by the advanced research programme (Kodo Kenkyuu) sponsored by Tokyo Metropolitan Government.

Compliance with ethical standards

Conflict of interest

The authors declare that they have no conflict of interest.

Ethical approval

This article does not contain any studies with human participants or animals performed by any of the authors.

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Authors and Affiliations

  1. 1.Tokyo Metropolitan UniversityTokyoJapan

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