An Assessment of the Health Care Safety Net

The healthcare sector in general and hospitals in particular represent a main application area for Data Envelopment Analysis (DEA). This paper reviews 262 papers of DEA applications in healthcare with special focus on hospitals and therefore closes a gap of over ten years that were not covered by existing review articles. Apart from providing descriptive statistics of the papers, we are the first to examine the research purposes of the publications. These research goals can be grouped into four distinct clusters according to our proposed framework. The four clusters are (1) "Pure DEA efficiency analysis", i.e. performing a DEA on hospital data, (2) "Developments or applications of new methodologies", i.e. applying new DEAy approaches on hospital data, (3) "Specific management question", i.e. analyzing the effects of managerial specification, such as ownership, on hospital efficiency, and (4) "Surveys on the effects of reforms", i.e. researching the impact of policy making, such as reforms of health systems, on hospital efficiency. Furthermore, we analyze the methodological settings of the studies and describe the applied models. We analyze the chosen inputs and outputs as well as all relevant downstream techniques. A further contribution of this paper is its function as a roadmap to important methodological literature and publications, which provide crucial information on the setup of DEA studies. Thus, this paper should be of assistance to researchers planning to apply DEA in a hospital setting by providing information on a) what has been published between 2005 and 2016, b) possible pitfalls when setting up a DEA analysis, and c) possible ways to apply the DEA analysis in practice. Finally, we discuss what could be done to advance DEA from a scientific tool to an instrument that is actually utilized by managers and policymakers.

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Measuring efficiency of community health centers: a multi-model approach considering quality of care and heterogeneous operating environments

McGarvey

Thorsen

et al. 2018

Health Care Manag Sci

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Over 1300 federally-qualified health centers (FQHCs) in the US provide care to vulnerable populations in different contexts, addressing diverse patient health and socioeconomic characteristics. In this study, we use data envelopment analysis (DEA) to measure FQHC performance, applying several techniques to account for both quality of outputs and heterogeneity among FQHC operating environments. To address quality, we examine two formulations, the Two-Model DEA approach of Shimshak and Lenard (denoted S/L), and a variant of the Quality-Adjusted DEA approach of Sherman and Zhou (denoted S/Z). To mitigate the aforementioned heterogeneities, a data science approach utilizing latent class analysis (LCA) is conducted on a set of metrics not included in the DEA, to identify latent typologies of FQHCs. Each DEA quality approach is applied in both an aggregated (including all FQHCs in a single DEA model) and a partitioned case (solving a DEA model for each latent class, such that an FQHC is compared only to its peer group). We find that the efficient frontier for the aggregated S/L approach disproportionately included smaller FQHCs, whereas the aggregated S/Z approach's reference set included many larger FQHCs. The partitioned cases found that both the S/L and S/Z aggregated models disproportionately disfavored (different) members of certain classes with respect to efficiency scores. Based on these results, we provide general insights into the trade-offs of using these two models in conjunction with a clustering approach such as LCA.

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An Assessment of the Health Care Safety Net

Cited by 7 publications

References 21 publications

Applications for Other Health Care Organizations

Applications for Other Health Care Organizations

The use of Data Envelopment Analysis (DEA) in healthcare with a focus on hospitals

Measuring efficiency of community health centers: a multi-model approach considering quality of care and heterogeneous operating environments

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