Objective:

To compare the efficiency levels of health expenditure in 25 countries in Latin America and the Caribbean.

Materials and methods:

The methodology of stochastic frontier analysis was applied to estimate the efficiency scores of the countries, using data from years 1995, 2000, 2005, 2010, 2012. Two output variables were considered, life expectancy at birth and infant mortality. In the latter case, determinants of inefficiency were analyzed.

Results:

The average efficiency level of the region using life expectancy is higher than when using infant mortality.

Conclusions:

Results suggest that countries can still improve the use of resources. Guiding the expenditure policy towards immunization programs and ensuring births take place in the presence of trained staff are efficient ways to save neonates.

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