Efficiency of the hospitals affects the price of health services. Health care payments have
equity implications. Evidence on hospital performance can support to design the policy;
however, the recent literature on hospital efficiency produced conflicting results.
Consequently, policy decisions are uncertain. Even the most of evidence were produced by
using data from high income countries. Conflicting results were produced particularly due
to differences in methods of measuring performance. Recently a management approach
has been developed to measure the hospital performance. This approach to measure the
hospital performance is very useful from policy perspective to improve health system from
cost-effective way in low and middle income countries. Measuring hospital performance
through management approach has some basic characteristics such as scoring
management practices through double blind survey, measuring hospital outputs using
various indicators, estimating the relationship between management practices and outputs
of the hospitals. This approach has been successfully applied to developed countries;
however, some revisions are required without violating the fundamental principle of this
approach to replicate in low- and middle-income countries. In this paper published in the Journal of Korean Medical Science Adhikari (2015) clearly defined and applied the process to Nepal. As the results of this, the approach produced expected
results. The paper contributes to improve the approach to measure hospital performance.