Proceedings of 4th Global Business and Finance Research Conference 25 - 27 May 2015, Marriott Hotel, Melbourne, Australia ISBN: 978-1-922069-76-4 Efficiency Including Quality Output Variable for Greek Public Hospitals Using Non-Parametric Technique Panos Xenos1, Nektarios Milton2, Polyzos Nikos3 and Yfantopoulos John4 Policy makers, professional organizations and payers have introduced a variety of initiatives and reforms for the health systems worldwide, aimed at improving hospital efficiency. Their efforts are concentrated in two main categories: to constrain increasing healthcare costs and to enhance quality of services provided. In OECD countries, hospital expenditures comprised about 37 per cent of total health expenditures in 2012. Sustainability of the health system requires that these expenditures will remain under control without adverse results in the quality of services and in the level of access of the population to the system. This study analyze the efficiency of the twenty-eight largest public hospitals for year 2009, which coincides with the first year of the implementation of the newly management information system of the Greek Ministry of Health. This is the first study in Greece to include a quality output variable in the measurement of hospital efficiency. It was used the non-parametric technique of Data Envelopment Analysis (DEA), and a second stage analysis has been done, to investigate relations between efficiency and factors such as the geographical region, the type of the hospital, the population each hospital serves, etc. The results show inefficiency gaps and spare capacity of the hospital system. Key words: Hospitals, efficiency, quality, Data Envelopment Analysis, Greek hospital sector ______________ 1Mr. Xenos Panos, PhD Candidate, Department of Statistics and Insurance Science, University of Piraeus, Greece, email: panosonex@hotmail.com, Address: 80 Karaoli and Dimitriou Str PhD Candidate, University of Piraeus, Greece, tel:+306972952053 2Dr. Nektarios Milton, Associate Professor, Department of Statistics and Insurance Science, University of Piraeus, Greece 3Dr. Polyzos Nikos, Associate Professor, Department of Social Policy and Management, University of Thrace, Greece 4Dr. Yfantopoulos John, Professor, Department of Political Science and Public Administration, University of Athens, Greece