Optimising efficiency and patient-centredness in general hospitals: insights from data envelopment and matrix analysis.

Purpose: Medical institutions face management challenges from intense competition and an unclear link between patient-centredness and profitability. This study examined the association between efficiency and patient-centredness in general hospitals and identified management strategies to optimise both.

Design/methodology/approach: Data from the 2021 patient experience evaluation by the Health Insurance Review and Assessment Service and financial statements from the Korea Health Industry Development Institute for general hospitals in South Korea were used. Efficiency scores and patient-centredness were determined for 256 general hospitals using data envelopment analysis (DEA), and their relationships were analysed through matrix analysis. The Kruskal-Wallis and Mann-Whitney tests assessed group differences identified through matrix analysis.

Findings: Efficiency and patient-centredness can be improved concurrently. Hospitals in the highest efficiency group reported significantly higher average inpatient revenue per 100 beds (179.67) and net profit (158.84) than those in lower-performing groups (p < 0.001). Optimal management of hospital beds and specialised diagnostic equipment per 100 beds was associated with higher efficiency scores, while a greater number of doctors and nurses positively influenced patient-centredness metrics. Therefore, general hospitals should invest in personnel and resources to enhance efficiency and patient-centredness, achieving optimal financial and operational outcomes.

Originality/value: This study combines DEA and matrix analysis to explore the link between hospital efficiency and patient-centredness, using recent data on patient experience and financials from South Korean hospitals. It identifies strategies to enhance both dimensions.