Comparison of technical efficiency of South Korean and Vietnamese public hospitals in 2006-2009

This study applied DEA method to compare operational efficiency of South Korean and Vietnamese general public hospitals. Thirty general public hospitals from Vietnam and thirty one from South Korea were included. The operation of the targeted Vietnam public hospitals varied greatly in their efficiency and was found to be relatively less efficient than those of South Korea. The difference of operational efficiency between Vietnam and Korea was statistically significant (t = 18.53, p < 0.001). This could be because: 1) Vietnam's public hospitals provide healthcare for majority of citizens, while South Korea's public hospitals only have a minor role in supplying healthcare services to its people; 2) the South Korea Government is undertaking more intensive cost-saving control process within public hospitals; 3) the incentive system for medical staff and the role of health insurance also plays an important role in performance of public hospitals.