Building econometric models for evaluating cost efficiency in healthcare procurement systems

Anate Benoit Nicaise Abbey 1, *, Iyadunni Adewola Olaleye 2, Chukwunweike Mokogwu 3, Amarachi Queen Olufemi-Phillips 4 and Titilope Tosin Adewale 5

1 Independent Researcher, TX, USA.
2 Bowling Green State University, Ohio USA.
3 Independent Researcher, USA.
4 Independent Researcher, UK.
5 Independent Researcher, Canada.
 
Review
International Journal of Frontline Research and Reviews, 2023, 01(03), 083–091.
Article DOI: 10.56355/ijfrr.2023.1.3.0026
Publication history: 
Received on 11 January 2023; revised on 28 February 2023; accepted on 26 February 2023
 
Abstract: 
The efficient procurement of healthcare resources is vital for maintaining sustainable and equitable healthcare systems. This paper explores the application of econometric models in evaluating and enhancing cost efficiency in healthcare procurement processes. It provides a theoretical overview of econometric modeling, emphasizing its relevance in addressing procurement challenges such as budget constraints, supplier variability, and market dynamics. A structured framework is proposed, outlining steps for data integration, model development, and decision-making alignment to optimize resource allocation. Additionally, the paper identifies key variables, such as supplier performance and demand trends, that drive cost efficiency. While challenges like data quality and modeling complexities persist, advances in data analytics and artificial intelligence offer significant opportunities for innovation. The recommendations include policy-level interventions, capacity-building initiatives, and practical strategies for stakeholders to improve procurement practices and drive financial sustainability in healthcare systems.
 
Keywords: 
Econometric Models; Healthcare Procurement; Cost Efficiency; Data Analytics; Resource Optimization; Artificial Intelligence
 
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