Impact of Implementation of Case-mix System on Efficiency of a Teaching Hospital in Malaysia

Abstract

University Kebangsaan Malaysia Medical Center (UKMMC) is the first government hospital in Malaysia which has taken the initiative to implement the case-mix system since July 2002. Established in 1997, this 873 bed teaching hospital provides tertiary level services to around 600,000 people in two southern districts of Federal Territory Kuala Lumpur. The objective of this research is to assess the impact of implementation of case-mix system on efficiency of clinical services provided by UKMMC using Stochastic Frontier Analysis. The hypothesis for this study is that the implementation of case-mix system has improved the level of efficiency at UKMMC. Results of SFA models proved that implementation of case-mix system have decreased the technical inefficiency 1.93 percent yearly during study period at UKMMC.