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What is DEA in Healthcare

Handbook of Research on Strategic Performance Management and Measurement Using Data Envelopment Analysis
It appears the first application of DEA to health issues is unpublished work by Subhash Ray dating from 1979 dealing with family planning centers in Costa Rica and Guatemala. Nunamaker and Lewin (1983) is the first published work applying Data Envelopment Analysis to health care, whereas Sherman (1984) was the first author to use DEA to evaluate overall hospital efficiency. By now there is a very extensive literature surveyed by O’Neill et al (2008) , Ozcan (2008) and Hollingsworth (2008) .
Published in Chapter:
Efficiency of Turkish Provincial General Hospitals with Mortality as Undesirable Output
Nurhan Davutyan (KHas University, Turkey) and Murat Bilsel (Marmara University, Turkey)
DOI: 10.4018/978-1-4666-4474-8.ch012
Abstract
The authors present a directional distance model where quality of care is brought in by treating mortality in each hospital as a strongly disposable “bad output.” After deriving pure technical and scale inefficiencies under strong disposability, the authors derive “congestion” inefficiencies via allowing weak disposability. A second stage, “seemingly unrelated” regression of these inefficiencies against hospital level variables like spare capacity, inpatient-to-outpatient ratio, and bed turnover rate allows pinpointing the critical areas for hospital performance improvement. Evidence shows that the smallest hospitals are operating on an inefficient scale. Moreover, allocation of specialists should be done very carefully, as shortage of specialists seems to cause congestion inefficiency, while having too many specialists causes technical inefficiency.
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