Cost-effectiveness of Capital Profit Oriented Corporations in Residential Social Care Services: Managerial Recommendations and Barriers in Czech Republic and Europe

This study explores the cost-effectiveness of capital profit-oriented corporations in the developing residential social care service sector of the Czech Republic. Data envelopment analysis (DEA) is used to evaluate the profit efficiency of 24 companies with available financial data from 2022. The results reveal substantial differences in efficiency, with only three companies achieving a score of 51-100%. The most efficient companies demonstrate knowledge spillover from foreign ownership, strategic capacity growth, staff training, and cooperation with the public sector. The paper concludes that the sector is underdeveloped and geographically concentrated. Managerial recommendations based on the leading companies' strategies highlight the importance of process improvement projects, integrated healthcare and social service provision, and a data-driven approach through regional social care service plan development.