Title: A comparison method for allocative efficiency measurement in multiclinic healthcare systems

Authors: Paul Dum, Liam O'Neill, M. Jeya Chandra, Jack C. Hayya

Addresses: Extravehicular Activities (EVA) Systems Group, Johnson Space Center, Houston, TX 77058, USA. ' Health Management and Policy, University of North Texas, Fort Worth, Texas 76107, USA. ' Department of Industrial and Manufacturing Engineering, Pennsylvania State University, 205 Leonhard Building, University Park, PA 16802, USA. ' Department of Supply Chain and Information Systems, The Pennsylvania State University, 441 Smeal College of Business, University Park, PA 16802, USA

Abstract: Managers of large networks of clinics need a way to meaningfully compare the performance of these clinics and make recommendations on how to improve the less efficient ones. This process is complicated by different patient populations requiring a different clinic service mix. In addition, a significant problem occurs when resources are shared between clinics or the output of one clinic becomes the input of another. A mixed integer/linear programming model is developed for comparing the allocative efficiencies of clinics in a network. The model is illustrated using an example of two competing health systems that are considering a merger.

Keywords: health services; capacity planning; DEA; data envelopment analysis; horizontal integration; multi-clinic healthcare systems; efficiency measurement; clinical networks; clinic performance; resource allocation; competing health systems; health system mergers.

DOI: 10.1504/IJBSR.2010.030776

International Journal of Business and Systems Research, 2010 Vol.4 No.2, pp.227 - 242

Published online: 05 Jan 2010 *

Full-text access for editors Full-text access for subscribers Purchase this article Comment on this article