Improvement potential in Danish elderly care

This paper examines Danish elderly care resource utilization among municipalities. The available production data are aggregated, which means that it is virtually impossible to allocate costs to specific services. We show that Multi-directional Efficiency Analysis (MEA) provides a much more subtle performance picture than Data Envelopment Analysis (DEA) because we are able to assess the input specific relative improvement potentials. The empirical results show considerable improvement potential for all inputs. The largest relative potential for improvement is found for administrative staff.