An Empirical Comparison on the Efficiency of Healthcare Companies in Malaysia with Data Envelopment Analysis Model
[1]
Lam Weng Siew, Department of Physical and Mathematical Science, Faculty of Science, UniversitiTunku Abdul Rahman, Kampar Campus, Kampar, Perak, Malaysia.
[2]
Liew Kah Fai, Centre for Mathematical Sciences, UniversitiTunku Abdul Rahman, Kampar Campus, Kampar, Perak, Malaysia.
[3]
Lam Weng Hoe, Centre for Business and Management, UniversitiTunku Abdul Rahman, Kampar Campus, Kampar, Perak, Malaysia.
Performance measurement of the company is significantly depends on their operational efficiency. The efficiency evaluation is an assessment for the company to determine their capability to maximize the outcomes with minimal level of inputs. The objective of this paper is to apply Data Envelopment Analysis (DEA) model to evaluate and compare the relative efficiency of the healthcare sector companies in Malaysia. In DEA model, the efficiency of the companies is determined as the ratio of sum-weighted outputs to sum-weighted inputs. In this study, the data consists of 12 companies from the healthcare sector in Malaysia from year 2011 to 2015. The results of this study show that ADVENTA, AHEALTH and KOTRA are ranked as efficient companies. This implies that these companies are in optimal control of their resources or inputs to generate maximum outputs. Therefore, these efficient companies can serve as the benchmark to other inefficient companies for further improvement. This study is significant because the DEA model can help to identify the efficient companies from the healthcare sector in Malaysia based on multiple outputs and inputs.
Healthcare Company, Data Envelopment Analysis, Efficiency, Linear Programming Model
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