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A Group Decision Process for Resource Allocation in the Health Setting

Author

Listed:
  • John G. Nackel

    (Ernst & Ernst, Chicago)

  • Jay Goldman

    (University of Missouri--Columbia)

  • William L. Fairman

    (University of Missouri--Columbia)

Abstract

A group decision process is developed that allocates an available budget to health programs based on program effectiveness. The program effectiveness is measured by comparing alternative programs (at various funding levels) with respect to the weighted objectives of the health care organization. The organizational objectives are weighted by a constant-sum paired comparisons scaling technique. An integer programming formulation allows the decision makers to maximize program effectiveness within the given budgetary, resource, regulatory, and program structure constraints. The Effectiveness Evaluation-Resource Allocation Process (ERAP) is validated by actual decision making teams testing four processes for resource allocation. An example from the validation experiment is presented to demonstrate the process.

Suggested Citation

  • John G. Nackel & Jay Goldman & William L. Fairman, 1978. "A Group Decision Process for Resource Allocation in the Health Setting," Management Science, INFORMS, vol. 24(12), pages 1259-1267, August.
    • Handle: RePEc:inm:ormnsc:v:24:y:1978:i:12:p:1259-1267
    DOI: 10.1287/mnsc.24.12.1259
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    Cited by:

    1. Zanakis, Stelios H. & Mandakovic, Tomislav & Gupta, Sushil K. & Sahay, Sundeep & Hong, Sungwan, 1995. "A review of program evaluation and fund allocation methods within the service and government sectors," Socio-Economic Planning Sciences, Elsevier, vol. 29(1), pages 59-79, March.
    2. Sanjay Mehrotra & Kibaek Kim, 2011. "Outcome based state budget allocation for diabetes prevention programs using multi-criteria optimization with robust weights," Health Care Management Science, Springer, vol. 14(4), pages 324-337, November.
    3. F B Abdelaziz & J M Martel & A Mselmi, 2004. "IMGD: an interactive method for multiobjective group decision aid," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 55(5), pages 464-474, May.

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