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Annals of Operations Research

, Volume 221, Issue 1, pp 161–172 | Cite as

Incorporating health outcomes in Pennsylvania hospital efficiency: an additive super-efficiency DEA approach

  • Juan Du
  • Justin Wang
  • Yao Chen
  • Shin-Yi Chou
  • Joe Zhu
Article

Abstract

The health care sector is one of the fastest growing sectors in the United States. Researchers are interested in conducting studies in the area of health economics in order to propose solutions to curb the rapid increase in health care spending and to improve the efficiency of the health care system in the United States. Specifically, hospital efficiency is one important research area in health economics. In this paper, data envelopment analysis (DEA) is used to assess hospital efficiency. An additive super-efficiency model is presented and applied to a sample of general acute care hospitals in Pennsylvania. In addition to the conventional choice of input and output variables, we include the survival rate as a quality measure of health outcome in the set of output variables. Thus our model takes both the quantity and the quality of the output into account. With the results obtained from our proposed DEA model, inefficiencies can be identified for hospitals to address without sacrificing the quality of care.

Keywords

Data envelopment analysis (DEA) Health care Hospital efficiency Slacks Super-efficiency 

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Copyright information

© Springer Science+Business Media, LLC 2011

Authors and Affiliations

  • Juan Du
    • 1
  • Justin Wang
    • 4
  • Yao Chen
    • 2
  • Shin-Yi Chou
    • 3
  • Joe Zhu
    • 4
  1. 1.School of Economics and ManagementTongji UniversityShanghaiP.R. China
  2. 2.College of ManagementUniversity of Massachusetts at LowellLowellUSA
  3. 3.Department of EconomicsLehigh UniversityBethlehemUSA
  4. 4.School of BusinessWorcester Polytechnic InstituteWorcesterUSA

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