Faculty of Actuarial Science and Insurance Seminar - Zilla Sinuany-Stern

Macro and micro efficiency analyses of hospitals via DEA

Abstract
Beyond its applications in business and the public sector, Data Envelopment Analysis (DEA) and its variants are widely used for measuring hospitals efficiency and their performance. DEA provides Pareto efficient frontier of organizational units (or Decision Making Units -DMUs) based on their multiple inputs and multiple outputs when inputs/outputs are not measured with the same units and the weights of each input/output is unknown. Linear programming is used to construct the efficient frontier. As by-product, via the dual results, benchmark analysis is provided pointing for each inefficient DMU the other efficient DMUs (their peers) which in relation to them it needs to be improved. Consequently, for each inefficient DMU, the improvements needed in each of its input/output in order to become efficient are given.

In the first part of the lecture a general overview of DEA and some of its variants will be presented. In the second part of the lecture macro and micro hospital efficiency analyses will be presented.

In macro analysis of hospitals' efficiency, the DMU is the hospital as a whole. In micro analysis, the DMU may be a ward within a hospital or even less than that. Sometimes, the macro and the micro levels share the same type of inputs and outputs. In those cases, it is interesting to verify if there is consistency in the efficiencies of the macro vs. the micro levels. However, due to lack of data on the macro level, often the micro level has more detailed data. It is interesting to verify the consistency of the efficiencies of the macro versus the micro level. Several examples will be presented.

File Attachments: CV full zilla 15.2.17.pdf

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