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Multifactor efficiency in Data Envelopment Analysis with an application to urban hospitals

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  • Liam O'Neill

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    Abstract

    A perennial difficulty in measuring hospital efficiency, and one with important policy implications, is how to compare teaching versus non-teaching hospitals. This problem reflects a broader methodological concern in Data Envelopment Analysis (DEA), which is the comparison of specialist and non-specialist Decision-Making Units (DMUs). This paper presents a new performance measure in DEA, termed multifactor efficiency, which represents an average partial factor productivity index summed over all output–input ratios. We apply this technique to measure the performance of 27 large, urban hospitals, including 13 teaching hospitals. These results were reviewed and validated by a panel of health care experts, and multifactor efficiency was shown to offer several benefits that enhance and complement existing performance measures in DEA. Copyright Kluwer Academic Publishers 1998

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    File URL: http://hdl.handle.net/10.1023/A:1019030215768
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    Bibliographic Info

    Article provided by Springer in its journal Health Care Management Science.

    Volume (Year): 1 (1998)
    Issue (Month): 1 (September)
    Pages: 19-27

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    Handle: RePEc:kap:hcarem:v:1:y:1998:i:1:p:19-27

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    Web page: http://www.springerlink.com/link.asp?id=101767

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    Cited by:
    1. Rowena Jacobs, 2000. "Alternative methods to examine hospital efficiency: Data Envelopment Analysis and Stochastic Frontier Analysis," Working Papers 177chedp, Centre for Health Economics, University of York.
    2. Wagner, Janet M. & Shimshak, Daniel G. & Novak, Michael A., 2003. "Advances in physician profiling: the use of DEA," Socio-Economic Planning Sciences, Elsevier, vol. 37(2), pages 141-163, June.
    3. O'Neill, Liam & Rauner, Marion & Heidenberger, Kurt & Kraus, Markus, 2008. "A cross-national comparison and taxonomy of DEA-based hospital efficiency studies," Socio-Economic Planning Sciences, Elsevier, vol. 42(3), pages 158-189, September.
    4. Rebba Vincenzo & Rizzi Dino, 2007. "Measuring Hospital Efficiency through Data Envelopment Analysis when Policy-makers' Preferences Matter. An Application to a Sample of Italian NHS Hospitals," Politica economica, Società editrice il Mulino, issue 3, pages 233-258.
    5. Nahra, Tammie A. & Mendez, David & Alexander, Jeffrey A., 2009. "Employing super-efficiency analysis as an alternative to DEA: An application in outpatient substance abuse treatment," European Journal of Operational Research, Elsevier, vol. 196(3), pages 1097-1106, August.

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