The Korea Local Administration Review

The purpose of this study is to analyze efficiency gap of health medicalservices in local governments is south Korea. We analyzed the efficiency oflocal health medical services through data envelopment analysis(DEA) program.For getting efficiency score, various variables are selected as input and outputitems. There are medical staffs, supporting staffs, medical agency, hospital bed,and high-priced equipment in input variables. On the other hands, outputvariables include medical profit, days of hospital treatment, and days ofoutpatients treatment. As a result, thirteen out of 232 local governments areefficient in CCR model. On the other hand, 46 local governments show that hasthe efficiency in health medical services through BCC model. Therefore, localgovernments should increase input and output variables as medical staff,medical agencies, and medical profit. Next, we verified the differences of localgovernments depending upon population size, regional location, rate of fiscalindependence, possession of MRI, and location of public local hospitals. Theresult suggested that local governments have the difference of efficiencyaccording to population size, regional location, rate of fiscal independence,possession of MRI, excluding location of public local hospitals. In conclusion,local governments belonging to rural region and having low fiscal independenceshould consider relocation of public local hospitals.
□ Keywords: health medical service, efficiency, DEA, local government, medicalprofit