[APM 필수지식] 공공부문 경영평가 기준, feat. 3Es

Basically, the public sector has different objective to private sector which ultimately aims to make profits. The public sector is to provide goods and services which are not covered by private sector. In this view, 3Es is used as performance evaluation for public sector. 

 

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Definition of 3Es

 

Economy 

• obtaining resources at the lowest cost

 

Effiicency 

• obtaining the greatest possible outputs from the resources available

Effectiveness

• how well public sector achieves its objectives

 

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Let's see example below

Brody and Jason Hospital (BJH) is a small hospital for the treatment of patients with only minor injuries. Patients with minor injuries are admitted into BJH and wait to be seen by a doctor. After treatment, most patients leave the hospital and need not return. If their treatment has failed, however, they are re-admitted for additional treatment.

 

Patients do not have to pay for treatment at BJH, which is a not for - profit, public sector hospital. It is funded entirely by the government from taxation and a fixed level of funding is received from the government each year. It is up to BJH to allocate its funding to different areas, such as doctors' salaries, medicines and all other costs required to run a hospital.

 

 

 

BJH's objectives are:

• to give prompt access to high quality medical treatment for patients
• to provide value for money for the taxpayer, as measured by the '3Es' framework of economy, efficiency, and effectiveness
• to contribute to medical science by developing innovative ways to deliver treatment to patients

 

 

 

Data for the year on BJH and national industry

	BJH	*National average
Number of doctors	25	24
Total doctor's salaries including overtime	$3.75m	$4.20m
Total doctors' salaries budget including overtime	$3.75m	$3.20m
Number of patients treated	24,375	20,000
**Average staff satisfaction rating	9%	89%
Number of patients re-admitted	1,830	300

* National average for other public sector minor injuries hospitals

** Staff satisfaction rating was obtained by conducting a survery of all 25 doctors. A survey score of 100% represent 'totally satisfied', and a score of 0% represents totally unsatisfied.

 

 

Economy 

Salary per doctor is a suitable measure of economy. Therefore, doctors at BJH have an average salary of $150,000  (3,750,000 / 25), compared to the national average of $175,000 (4,200,000 / 24) . In terms of Economy, BJH is performing better than industry average.

 

 

Efficiency

Treating patients is a key objective of BJH and the number of doctors is an important resource. Therefore, the number of patients treated per year by each doctor is a good measure of efficiency. Each doctor at BJH treats an average of 975 (24,375 / 25) patients per year, compared to the national average of 833 patients per year. In terms of Efficiency, doctors at BJH are making greater efficiency rather than doctors at other hospitals.

 

 

Effectiveness

Effectiveness is concerned with how well BJH achieves its objectives. BJH has multiple objectives, one of which is to provide high quality treatment for patients. Therefore, the rate of re-admission of patients is a measure of effectiveness. If BJH provides high quality treatment for patients, the rate of re-admission of patients will be lower. The rate of re-admission at BJH is 7.5% (1,830 / 24,375), compared to the national average of 1.5% (300/20,000). BJH seems to have performed relatively very poorly in this respect.