LAUSR

Abstract This paper analyzes efficiency and productivity changes in Emergency Obstetric and Newborn care (EmONC) in regional public hospitals in India. A novel approach of Weighted Russell Directional Distance Function Model (WRDDFM) has been employed. This model considers all the radial and non-radial slacks associated with good outputs as well as the undesirable outcomes while estimating inefficiency and helps to identify the source of the inefficiency. The empirical results based on a sample of 46 regional public hospitals from 2006–07 to 2013–14 show on average overall inefficiency of 24% and much of these are due to inefficiencies associated with undesirable outcome of stillbirths and intra-uterine deaths. Further, on an average the sampled hospitals have experienced marginal productivity decline over the reform period. The study indicates that there is a greater scope for efficiency and productivity gains in public hospitals, particularly if the undesirable outcome of still birth is minimized.