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Related Experiment Videos

A modified three-stage data envelopment analysis. The Netherlands.

Jos L T Blank1, Vivian Valdmanis

  • 1Health Policy Program, University of the Sciences, Philadelphia, PA, USA. j.l.t.blank@freeler.nl

The European Journal of Health Economics : HEPAC : Health Economics in Prevention and Care
|February 17, 2005
PubMed
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This study assessed cost inefficiency in Dutch residential care for the mentally disabled. After accounting for external factors, cost efficiency improved by 6%, suggesting regulation impacts performance.

Area of Science:

  • Health Economics
  • Healthcare Management
  • Disability Services Research

Background:

  • Care for the disabled in The Netherlands represents 10% of total healthcare costs (nearly 1% of GNP).
  • Residential care for the mentally disabled constitutes approximately half of these disability care expenditures.
  • Understanding cost inefficiency is crucial for optimizing resource allocation in this sector.

Purpose of the Study:

  • To quantify cost inefficiency in a sample of Dutch residential homes for the mentally disabled in 1998.
  • To analyze the impact of external factors on cost efficiency within these facilities.
  • To evaluate the effectiveness of regulatory environments on operational efficiency.

Main Methods:

  • Data Envelopment Analysis (DEA) was employed to assess the sample of homes.

Related Experiment Videos

  • A second stage of analysis evaluated non-radial slack and external factor effects.
  • Efficiency measures were adjusted to account for identified external influences.

    • Main Results:

    • Technical and scale inefficiency were found to disappear after adjusting for external factors.
    • Overall cost efficiency increased by 6% following the adjustment for external effects.
    • The findings highlight the significant influence of regulatory frameworks on operational efficiency.

    Conclusions:

    • Strict governmental regulation in Dutch homes for the mentally disabled appears to mitigate technical and scale inefficiencies.
    • The applied methodology offers a framework for assessing cost efficiency in regulated service sectors.
    • Optimizing care for the disabled requires considering both internal operations and external regulatory pressures.