Last update:
16-Jun-2006

The aim of this study was to measure the efficiency of public and private dialysis units in Greece and to determine how it is affected by the type and amount of resources consumed. Efficiency was measured by data envelopment analysis (DEA), a non-parametric method that identifies best-practice peers, which are set as benchmarks for the less efficient units. The sample consisted of 118 dialysis units operating in the public and private sectors. Production characteristics were designated in terms of two input measures -nursing staff and dialysis machines- and one output measure, namely the number of patients treated per month. The DEA model selected was input oriented, allowing for variable returns to scale and the units were ranked according to a benchmarking approach. The mean efficiencies for the public and private units were 65.04% and 82.21%, respectively, and independent sample t-tests showed statistically significant differences between these scores. The units were also classified according to location, being either in Athens, Thessaloniki or another region, and the procedure was repeated. The results yielded mean efficiency scores of 58.89%, 61.48% and 67.51% for the three locations, respectively. Comparison, in this case, indicated significant differences between the public sector units located in Athens and those located in Thessaloniki or elsewhere. Productivity is not associated with efficiency and, in particular, in the public sector there are indications of dis-economies of scale. Concerning the two resources, better utilization of nursing staff was identified as a more important contributor to efficiency. The overall findings are encouraging as regards the potential of DEA in this setting and generate the need for further research in order to validate the conclusions.

Key words: DEA, Dialysis, Efficiency, Productivity.