ISSN 2326-7291
International Journal of Public Health and Epidemiology ISSN 2326-7291 Vol. 14 (8), pp. 001-012, August, 2025. Available online at www.internationalscholarsjournals.org © International Scholars Journals
Full Length Research Paper
Technical Efficiency of Primary Health Care Facilities in Addis Ababa: Data Envelopment Analysis
Serkalem Girma Moges1*, Lebitsi Maud Modiba2
1University of South Africa, Ethiopia Country Office, Addis Ababa, Ethiopia.
2University of South Africa, Department of Health Studies, Pretoria, South Africa.
Abstract
Received 14 March, 2025; Revised 4 July, 2025; Accepted 4 July, 2025; Published 4 August, 2025
Background: This study assessed the technical efficiency of 94 health centers in Addis Ababa, Ethiopia. It aimed to identify inefficiency sources and estimate potential cost savings. Methods: A quantitative, input-oriented, variable returns to scale Data Envelopment Analysis (DEA) model was applied, using secondary data on health service inputs and outputs from July 2017 to June 2018. Five input and four output variables were combined into a composite output index. Results: Of the 91 health centers included in the analysis, only 4 (4%) were technically efficient. Efficiency scores ranged from 11.8% to 100%, with an average of 69%, indicating wide variation in performance. The main inefficiency source was scale inefficiency, reflecting suboptimal operating size, followed by pure technical inefficiency. If all health centers operated at the efficiency level of the best performers, approximately 15% of the healthcare budget, about 147 million ETB, could be saved. Conclusions: By leveraging routine data systems, the study offers a robust framework for ongoing efficiency assessment and benchmarking. For Ethiopian policymakers and health managers, the findings underscore that improving efficiency is not only a technical requirement but a strategic lever. Saved resources could be immediately redirected to expand access, enhance service quality, and improve frontline workforce advancing equitable and sustainable healthcare delivery.
Keywords: Technical Efficiency, Data Envelopment Analysis (DEA), Health Service Delivery, Scale Inefficiency, Cost savings, Healthcare Budget Optimization, Ethiopian Health System.