Efficiency of Public Health Services in Tamil Nadu: A Disaggregated Analysis

Abstract

Efficiency in the health system can be referred to as the attained level compared to the maximum level of outcome that could be achieved using the given amount of resources. In a resource-constrained country like India, analysing the efficiency of the health system is of utmost importance, as limited resources must serve a vast population. In India, Tamil Nadu is a frontrunner in the provision of health services. The state of Tamil Nadu strives to provide quality health services to its people, for which improving the efficiency of health services is imperative. Therefore, this study analyses the efficiency of public health services among the districts of Tamil Nadu using a two-stage approach. In the first stage, Data Envelopment Analysis (DEA) is solved, and efficiency scores are calculated using the selected inputs and outputs. In the second stage, the obtained efficiency scores are regressed on the selected explanatory variables that are expected to influence the efficiency scores. The DEA results reveal wide differences in the efficiency levels of public health services among Tamil Nadu’s districts. Among the explanatory variables, economic development, measured in terms of Net District Domestic Product, was found to be an influencing factor in the efficiency scores. This calls for the state to focus on regional development to achieve efficiency and provide improved health services to the people.