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Measuring Efficiency of the New Zealand District Health Boards: An Empirical Research Using Two‐Stage Data Envelopment Analysis

Health care is one of the core public services in New Zealand and consumes the second largest share of government expenditure. It is thus important to monitor the technical efficiency of the health services. We employ a two‐stage Data Envelopment Analysis of New Zealand District Health Boards (DHBs) data over the period from 2013/2014 to 2016/2017 and found that DHBs generally improved their technical efficiency during this time. Our results suggest that further improvements to efficiency might be possible through greater attention to budget preparation, improvements to building asset utilisation and optimisation of patient flow at emergency departments.