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

  • Gary Ferrier

    ()

  • Julie Trivitt

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

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File URL: http://hdl.handle.net/10.1007/s11123-012-0305-z
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Article provided by Springer in its journal Journal of Productivity Analysis.

Volume (Year): 40 (2013)
Issue (Month): 3 (December)
Pages: 337-355

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Handle: RePEc:kap:jproda:v:40:y:2013:i:3:p:337-355
Contact details of provider: Web page: http://www.springerlink.com/link.asp?id=100296

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  1. Ole Olesen & Niels Petersen, 2002. "The Use of Data Envelopment Analysis with Probabilistic Assurance Regions for Measuring Hospital Efficiency," Journal of Productivity Analysis, Springer, vol. 17(1), pages 83-109, January.
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  7. Andrei Shleifer, 1985. "A Theory of Yardstick Competition," RAND Journal of Economics, The RAND Corporation, vol. 16(3), pages 319-327, Autumn.
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  9. Olesen, O. B. & Petersen, N. C., 1995. "Incorporating quality into data envelopment analysis: a stochastic dominance approach," International Journal of Production Economics, Elsevier, vol. 39(1-2), pages 117-135, April.
  10. Mehdi Farsi, 2004. "Changes in Hospital Quality after Conversion in Ownership Status," International Journal of Health Care Finance and Economics, Springer, vol. 4(3), pages 211-230, 09.
  11. Mary E. Deily & Niccie L. McKay, 2006. "Cost inefficiency and mortality rates in Florida hospitals," Health Economics, John Wiley & Sons, Ltd., vol. 15(4), pages 419-431.
  12. Thomasson, Melissa A., 2002. "From Sickness to Health: The Twentieth-Century Development of U.S. Health Insurance," Explorations in Economic History, Elsevier, vol. 39(3), pages 233-253, July.
  13. Michael D. Rosko, 2001. "Cost efficiency of US hospitals: a stochastic frontier approach," Health Economics, John Wiley & Sons, Ltd., vol. 10(6), pages 539-551.
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