Welfare Losses Due To Inefficient Structure – Turkey Case

Purpose: The present study is intended to analyze hospital efficiency according to ownership. Methodology/approach: The method used in this study is the data envelopment analysis (variable returns to scale-DEA). With this method, the efficiency levels of the active training hospitals in Turkey have been determined. Findings: The order of many effective training hospitals in Turkey is as follows: Social security institute hospitals, private university hospitals, public hospitals and state hospitals. The total welfare loss which stems from this inefficient structure in these hospitals is calculated as $76.379.920. Research limitation: The difficulty of attaining the data has limited the researh to the year 2003. Originality/value: In this study, slacks and congestion have been used as the complementaries of the efficiency analyses. Therefore, the results obtained from DEA have been used in order to attain political implications and thus political propositions