Efficiency and productivity of Mongolian public hospitals: a three-stage DEA and Malmquist productivity index approach
DOI:
https://doi.org/10.53468/mifyr.2026.6.3.58Keywords:
Three-stage DEA; Stochastic frontier analysis; Malmquist productivity index; Public hospital efficiency; Environmental adjustment; Financial resource allocationAbstract
This study evaluates the efficiency and productivity of 31 Mongolian public hospitals from 2017 to 2022 using a three-stage Data Envelopment Analysis (DEA), Stochastic Frontier Analysis (SFA), and Malmquist Productivity Index (MPI) framework. An input-oriented VRS/BCC model incorporated hospital beds, physicians, nurses, other staff, and expenditure as inputs, with total patients and revenue as outputs. SFA adjusted input slacks for socioeconomic, demographic, geographic, and COVID-19-related conditions before efficiency was re-estimated. Mean pure technical efficiency was higher after environmental adjustment in every year, with a statistically significant difference (z = −11.064, p < .001). The MPI results showed a slight productivity decline in 2017–2018 (MEPI = 0.9673), followed by improvements in subsequent periods, peaking in 2020–2021. Technological change contributed more to productivity growth than efficiency catch-up. These findings highlight the importance of environmental conditions in hospital performance evaluation and support equitable benchmarking and more efficient public healthcare resource allocation.
References
[1] Amarjargal, G., Dagvadorj, T., & Ganbat, O.-E. (2026). Challenges and opportunities of green economic policy: An empirical analysis of Mongolia’s economic growth. International Journal of Social Science and Humanities Research-MIYR, 6(1), 73–84. https://doi.org/10.53468/mifyr.2026.6.1.73
[2] Charnes, A., Cooper, W. W., & Rhodes, E. (1978). Measuring the efficiency of decision making units. European Journal of Operational Research, 2(6), 429–444.https://doi.org/10.1016/0377-2217(78)90138-8
[3] Banker, R. D., Charnes, A., & Cooper, W. W. (1984). Some models for estimating technical and scale inefficiencies in data envelopment analysis. Management Science, 30(9), 1078–1092. https://doi.org/10.1287/mnsc.30.9.1078
[4] Kohl, S., Schoenfelder, J., Fügener, A., & Brunner, J. O. (2019). The use of data envelopment analysis (DEA) in healthcare with a focus on hospitals. Health Care Management Science, 22(2), 245–286. https://doi.org/10.1007/s10729-018-9436-8
[5] Kim, H. J. (2018). Analysis of relative efficiency of public healthcare institutions by healthcare delivery system and improvement measures. Journal of Public Society, 8(4), 33–58.
[6] Kim, K. S., & Hwang, K. S. (2010). Evaluation of hospital management efficiency using DEA and AHP. Korean Journal of Production and Operations Management, 21(3), 251–267.
[7] Kim, Y. J., & Kim, K. H. (2020). Analysis of managerial efficiency of regional public hospitals using DEA. Journal of the Korea Academia-Industrial Cooperation Society, 21(8), 512–520.
[8] Aigner, D. J., Lovell, C. A. K., & Schmidt, P. (1977). Formulation and estimation of stochastic frontier production function models. Journal of Econometrics, 6(1), 21–37. https://doi.org/10.1016/0304-4076(77)90052-5
[9] Battese, G. E., & Coelli, T. J. (1992). Frontier production functions, technical efficiency and panel data: With application to paddy farmers in India. Journal of Productivity Analysis, 3(1–2), 153–169. https://doi.org/10.1007/BF00158774
[10] Fried, H. O., Lovell, C. A. K., Schmidt, S. S., & Yaisawarng, S. (2002). Accounting for environmental effects and statistical noise in data envelopment analysis. Journal of Productivity Analysis, 17(1–2), 157–174. https://doi.org/10.1023/A:1013548723393
[11] Chen, Z., Chen, X., Gan, X., Bai, K., Baležentis, T., & Cui, L. (2020). Technical efficiency of regional public hospitals in China based on the three-stage DEA. International Journal of Environmental Research and Public Health, 17(24), 9383. https://doi.org/10.3390/ijerph17249383
[12] Zheng, W., Sun, H., Zhang, P., Zhou, G., Jin, Q., & Lu, X. (2018). A four-stage DEA-based efficiency evaluation of public hospitals in China after the implementation of new medical reforms. PLOS ONE, 13(10), e0203780. https://doi.org/10.1371/journal.pone.0203780
[13] Lu, W., Evans, R. D., Zhang, T., Ni, Z., & Tao, H. (2020). Evaluation of resource utilization efficiency in obstetrics and gynecology units in China: A three-stage data envelopment analysis of the Shanxi province. The International Journal of Health Planning and Management, 35(1), 309–317. https://doi.org/10.1002/hpm.2908
[14] Hajiagha, S. H. R., Mahdiraji, H. A., Hashemi, S. S., Garza-Reyes, J. A., & Joshi, R. (2023). Public hospitals performance measurement through a three-staged data envelopment analysis approach: Evidence from an emerging economy. Cybernetics and Systems, 54(1), 1–26. https://doi.org/10.1080/01969722.2022.2055382
[15] Zubir, M. Z., Noor, A. A., Mohd Rizal, A. M., Harith, A. A., Abas, M. I., Zakaria, Z., & A. Bakar, A. F. (2024). Approach in inputs & outputs selection of data envelopment analysis (DEA) efficiency measurement in hospitals: A systematic review. PLOS ONE, 19(8), e0293694. https://doi.org/10.1371/journal.pone.0293694
[16] Babalola, T. K., & Moodley, I. (2020). Technical efficiency and productivity of public district hospitals in KwaZulu-Natal Province, South Africa. Journal of Public Health Research, 9(1), 1741. https://doi.org/10.4081/jphr.2020.1741
[17] Caves, D. W., Christensen, L. R., & Diewert, W. E. (1982). The economic theory of index numbers and the measurement of input, output, and productivity. Econometrica, 50(6), 1393–1414. https://doi.org/10.2307/1913388
[18] Färe, R., Grosskopf, S., Norris, M., & Zhang, Z. (1994). Productivity growth, technical progress, and efficiency change in industrialized countries. American Economic Review, 84(1), 66–83.
[19] Sülkü, S. N., Mortaş, A., & Küçük, A. (2023). Measuring efficiency of public hospitals under the impact of COVID-19: The case of Türkiye. Cost Effectiveness and Resource Allocation, 21, 70. https://doi.org/10.1186/s12962-023-00480-6
[20] Yoo, K. J., Lee, Y., Lee, S., Friebel, R., Shin, S.-A., Lee, T., & Bishai, D. (2023). The road to recovery: Impact of COVID-19 on healthcare utilization in South Korea in 2016–2022 using an interrupted time-series analysis. The Lancet Regional Health – Western Pacific, 41, 100904. https://doi.org/10.1016/j.lanwpc.2023.100904
[21] Yang, D. H., Jang, Y. J., & Ro, J. H. (2012). Analysis of technical inefficiency of public hospitals using the stochastic frontier model. Health Economics and Policy Research, 18(4), 41–64.
[22] Tone, K. (2001). A slacks-based measure of efficiency in data envelopment analysis. European Journal of Operational Research, 130(3), 498–509. https://doi.org/10.1016/S0377-2217(99)00407-5
[23] Liu, Y., Mai, L., Huang, F., & Zeng, Z. (2024). Regional healthcare resource allocation and decision-making: Evaluating the effectiveness of the three-stage super-efficiency DEA model. Frontiers in Public Health, 12, 1393143. https://doi.org/10.3389/fpubh.2024.1393143
[24] Zhao, D., Huang, H., & Zhang, Y. (2025). Study on the efficiency of health resource allocation in the western region of China: Based on three-stage DEA and Tobit regression analysis. BMC Health Services Research. https://doi.org/10.1186/s12913-025-12630-y
[25] Kim, K. M., Cho, M. J., Lee, S. K., & Ahn, J. H. (2024). Analysis of inter-regional healthcare resource efficiency using DEA. Journal of the Korea Academia-Industrial Cooperation Society, 25(1), 431–439.
[26] Cheng, J., Jia, C., Zhang, Y., Zhu, Y., & Wang, Q. (2024). Measuring technical efficiency and productivity of secondary maternal and child health hospitals in Hubei, China: Some evidences from Hubei Province of China 2019 to 2021. INQUIRY: The Journal of Health Care Organization, Provision, and Financing, 61. https://doi.org/10.1177/00469580241254543
Downloads
Published
How to Cite
Issue
Section
Categories
License
Copyright (c) 2026 Bolorchimeg Uranchimeg, Young Kyun Kim

This work is licensed under a Creative Commons Attribution 4.0 International License.