Identifying and Explaining the Efficiency of the Public Health Systems in European Countries

Abstract The purpose of this study was to identify the efficient European healthcare systems. The study differs from other similar researches in that it uses different variables in assessing the efficiency of the healthcare systems, and also in that it uses a two-stage approach in the analysis. In order to identify the efficient healthcare systems, we used a non-parametric method, Data Envelopment Analysis, which allows the evaluation of the countries against an efficiency frontier. Furthermore, we explain the efficiency by analysing several factors which influence the efficiency of the healthcare systems, using the censored regression analysis. The findings indicate that there are significant efficiency disparities both among the developed states and among the developing ones. Finally, we suggest several directions for the public policy, in order to increase the efficiency of the public healthcare systems in the European countries.