Measuring cost and technical efficiency in the operations of the National Health Insurance Scheme in Ghana: the case study of Ashanti Region
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Date
November, 2015
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Abstract
Measuring cost and technical efficiency in the operations of the NHIS in Ghana is a vital issue. The study used DEA-Technical Efficiency Model and DEA-Cost Efficiency Model to estimate the technical and cost efficiency levels of the NHIS. A regression was also adopted to determine which factors are responsible for variation of technical and cost efficiency in the operations of the NHIS over the period (2009-2012). The findings indicates that only one NHIS of the sample units (NHIS) operates at its optimal from 2009-2012 in the case of technical efficiency while for cost efficiency results, none of the sample units operates at optimal level from 2009-2012. The technical efficiency result reveals that on average, efficiency results are higher, thus 0.719, 0.704, 0.701 and 0.730 respectively from 2009-2012 while the cost efficiency results suggests that on average, the efficiency results are low, thus 0.555, 0.441, 0.404 and 0.419 respectively from 2009- 2012. The determinant of technical efficiency results indicates that only AGE, Total Assets (TASSETS) and Location (LOC) that are inversely related to technical efficiency while only Total Premium (TPRM), Loss Ratio (LR), and Total Subsidy (TSUBSIDY) that relates positively to technical efficiency. In the case of cost efficiency, the determinants results shows that only AGE, Total Assets (TASSETS) and Total Subsidy (TSUBSIDY) that are negatively related with cost efficiency while only Total Premium (TPRM), Loss Ratio (LR), and Location (LOC) that relates positively with cost efficiency. The study concludes that AGE, TASSETS, TPRM, and LR except TSUBSIDY and LOC are all significant determinants of the NHIS’s operations in terms of cost and technical efficiency as they influence the operations of the NHIS in one way or the other over the period (2009-2012).
Description
A thesis submitted to the Department of Economics in partial fulfilment of the requirement for the Degree of Master of Philosophy (Economics)
Keywords
Ghana, Ashanti, National Health Insurance Scheme, Cost and Technical efficiency