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Incorporating quality into the measurement of hospital efficiency: a double DEA approach

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  • Gary Ferrier
  • Julie Trivitt

Abstract

This paper uses “double DEA” to assess how accounting for quality influences DEA technical efficiency scores of a sample of 1,074 US hospitals. In the first use of DEA, quality indices are estimated using a variety of process and outcome measures of quality. In the second use of DEA, technical efficiency is assessed while controlling for quality. A variety of DEA quality indices and a DEA variety of efficiency models are compared to determine how the treatment of quality influences findings regarding technical efficiency. Controlling for efficiency does matter, with outcome measures having an apparently greater impact than process measures. Given the call for improved quality and better cost containment, controlling for quality is an important contribution to efficiency analysis. Copyright Springer Science+Business Media, LLC 2013

Suggested Citation

  • Gary Ferrier & Julie Trivitt, 2013. "Incorporating quality into the measurement of hospital efficiency: a double DEA approach," Journal of Productivity Analysis, Springer, vol. 40(3), pages 337-355, December.
    • Handle: RePEc:kap:jproda:v:40:y:2013:i:3:p:337-355
    DOI: 10.1007/s11123-012-0305-z
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    More about this item

    Keywords

    Double DEA; US hospitals; Quality of care; Technical efficiency; D24; I12; L25;
    All these keywords.

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance

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