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Managing physician efficiency and effectiveness in providing hospital services
J A Chilingerian1, H D Sherman
1Heller School, Brandeis University, Waltham, MA 02254.
Health Services Management Research
|February 8, 1990
Summary
This study uses data envelopment analysis (DEA) to identify inefficient physician practices in treating heart shock patients. Findings can help reduce healthcare costs by improving physician practice patterns and resource allocation.
Area of Science:
- Health Economics
- Medical Practice Analysis
- Healthcare Management
Background:
- Physicians significantly influence healthcare costs, controlling over 80% of cost-affecting decisions.
- Managing physician practice patterns is crucial for effective healthcare cost containment strategies.
Purpose of the Study:
- To pilot a method for identifying inefficient physician practice patterns in treating heart shock patients.
- To assess the utility of data envelopment analysis (DEA) in evaluating physician efficiency and resource utilization.
- To integrate patient care quality into the assessment of physician practice efficiency.
Main Methods:
- Employed data envelopment analysis (DEA), a linear-program-based tool for efficiency evaluation.
- Analyzed practice patterns of physicians treating patients experiencing heart shock.
- Quantified excess resource utilization by identifying physicians with inefficient practices.
Main Results:
- Identified physicians utilizing excess resources in patient treatment.
- Estimated the extent of resource overuse among identified inefficient practices.
- Demonstrated a method to incorporate patient care quality into efficiency assessments.
Conclusions:
- Data envelopment analysis (DEA) can effectively identify physician inefficiencies in resource use.
- Stable findings of physician inefficiency can inform interventions to alter practice patterns.
- This approach offers a pathway to assist in healthcare cost containment through optimized physician practices.