Technical and scale efficiency of public community hospitals in Eritrea: an exploratory study

Health Economics Review

Table 4 Results for Tobit model

Variable	Coefficient	t-ratio
OPDIPD	−1.333	−3.14
ALOS	0.152	3.91
POP	0.145	0.47
REGION	0.068	0.22
Constant	−0.249	−0.68
Sigma	0.412
	8 left-censored observations at Ineff ≥ 0
	11 uncensored observations
Observations summary	0 right-censored observations
Number of observations	19
χ²(4)	16.98
Prob > χ²	0.0019
Pseudo R ₂	0.457

Notes: The critical t-value for 15 degrees of freedom and a 5% two-tailed level of significance is 2.131 is less than computed t-ratios for OPDIPD and ALOS, so we can reject the null hypothesis of no effect in these cases and conclude that the two are statistically significant variables in explaining expected hospital inefficiency.

ISSN: 2191-1991