Energy efficiency analysis in public hospitals: an application of radial and non-radial data envelopment analysis models

Abstract

In Turkey to date, the main tools which have been applied to enhance energy efficiency and to reduce energy consumption have mostly been regulatory based. However, many other initiatives on energy efficiency were adopted by both public, private and third sector. Complied with these development programs on cost savings and strategic inputs, public sector organizations which were labeled high energy consuming, such as healthcare facilities, take many steps in relation to diversification and redefinition of potential energy resources. But there is still a lack of studies attempting to analyze energy use in public health sector. Hence this study was a step to contributing energy efficiency initiatives by promoting innovative managerial practices and metric tools. Energy efficiencies of public hospitals were examined using the data envelopment analysis proposing three radial and non-radial models. The mean technical efficiency score of the first radial model assuming input-oriented and variable returns to scale was 0.78; the mean total efficiency score of the second non-radial model assuming input-oriented and variable returns to scale was 0.67; the mean total efficiency score of the third non-radial model assuming non-oriented and variable returns to scale was 0.56. It was observed that nine public hospitals were efficient in radial and non-radial models. However, inefficient public hospitals need to make further improvements in their energy consumption levels.