Adding value in healthcare service by improving operational efficiency using data envelopment analysis (Q840571)

Summary: Data Envelopment Analysis (DEA) has been used in several studies on healthcare service. There, the authors primarily utilised the traditional Charnes-Cooper-Rhodes (CCR) and Banker-Charnes-Cooper (BCC) models to measure relative efficiency of decision-making units, and their main focus was on efficient units. In this paper, using the CCR model with Intrinsic Assurance Region (IAR), we focus on how to conserve resources and eliminate waste by projecting inefficient units onto the efficient frontier. By analysing a set of data from hospitals that operate in a \textit{non-market non-profit} environment, we demonstrate how to add \textit{value} in healthcare service by improving the technical efficiency of inefficient hospitals.