Financial Performance Evaluation of Public Oral and Dental Health Centers with Malmquist Index

Abstract

This study aims to measure the change in the financial performance of Oral and Dental Health Centers (ODHCs) that were affiliated with public hospital unions (PHU) as a result of the establishment of the Turkish Public Hospitals Institution (TPHI), before and after PHUs. The financial data of 113 ODHCs affiliated to the Ministry of Health (MoH) between 2011 and 2016 were analyzed. The effects PHUs, whose organizational structure is horizontal and decentralized, on the financial performance of ODHCs were investigated using the Malmquist Index (MI) method. In the research, personnel expenses, raw material expenses and outsourcing expenses are used as input variables, and sales revenues are used as output variables. When TED scores are evaluated, there has been an increase of 4% in 2016 compared to 2011. When TD scores are examined, there was a 26% increase in 2016 compared to 2011. As a result of these two components, there was a 26% increase in TFV in 2016 compared to 2011. When looking at TFV in the 2011-2016 period, there was progress (MI>1) in 76 ADSMs (67%) and there was a decline (MI<1) in 37 ADSMs (33%). In 2016, compared to 2011, there was an increase of 4% when TED scores were evaluated, 6% when TD scores were evaluated, and 9% when TFV scores were evaluated. It can be said that the progress in TED, TD and TVF, which are among the efficiency indicators that make up the MI, is a positive result of the new organizational structure. It can be said that PHUs are financially effective and efficient when looked at in the context of ADSMs.