This study adopted data envelopment analysis (DEA) as an efficiency measurement technique to compare production efficiency across hospitals in Taiwan. Based on a sample 105 accredited and district teaching hospitals during 1993-1998, the major analytical findings indicated that private hospitals were operated more efficient than government-owned hospitals, whereas the difference in efficiency between the three hospital groups was not significant. Further, it also indicated that most medical centers and regional hospitals appeared over-sized and inefficiencies of scale, even if they operated efficiently than others.