Analysis of the Efficiency of Public Spending on Health Care by the Municipalities of Rondônia, Brazil, using the Data Envelopment Analysis Method

  • Joedson Silva dos Santos
  • Alexandre de Freitas Carneiro
  • Isaac Costa Araújo Filho


For a better access to the public Brazilian health care system and in order for the citizens to see the results of the taxes they paid, a correct and efficient allocation of public resources is necessary. Based on the theory of Social Management and on the agency theory, this research aims to analyze the efficiency of the public resources allocated in the function of government or of expenditure Health Care by the municipalities of the state of Rondônia, in the north of Brazil. The population was characterized as a census, since all the 52 municipalities were analyzed. The methodological preparation was based on a quantitative approach, using the Data Envelopment Analysis method, through a BCC input oriented model. The results showed that most municipalities (54%) can be classified as having “strong inefficiency” – the other 40% were classified as presenting “weak inefficiency” or “moderate inefficiency”. The municipalities with the highest level, characterized as benchmarks, were Alto Paraíso, Buritis and Porto Velho (the capital of the state). There was no correlation between expenditures on health care and the following variables: number of registered families in primary care, number of hospitalizations, number of outpatient care production and number of health care facilities. The results highlighted a need for a revision to the management practices currently in place regarding the allocation of the resources for this particular sector (health care). The study is of potential interest to public accountants, controllers, auditors, managers and advisors managing public health policies and to the society in general, aiming at instrumentalizing social control.Keywords: Data Envelopment Analysis, efficiency, Brazilian municipalities, public resources