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A mixed-integer slacks-based measure data envelopment analysis for efficiency measuring of German university
1Faculty of Business and Economics, University of Augsburg, Universitätsstraße 16, 86159, Augsburg, Germany. mansour.zarrin@uni-a.de.
This study introduces a new Data Envelopment Analysis (DEA) model for flexible and integer measures, enhancing efficiency analysis in university hospitals. Third-party funding significantly impacts hospital inefficiencies.
Area of Science:
- Operations Research
- Health Services Research
- Econometrics
Background:
- Standard Data Envelopment Analysis (DEA) models assume continuous inputs and outputs.
- Existing models struggle with flexible measures (inputs/outputs) and integer data.
- There is a need for advanced DEA models to handle complex data structures in healthcare settings.
Purpose of the Study:
- To propose an extended Slacks-Based Measure (SBM) DEA model.
- To accommodate flexible and integer measures simultaneously in efficiency evaluations.
- To analyze inefficiencies in German university hospitals.
Main Methods:
- Developed an extended Slacks-Based Measure (SBM) DEA model.
- Determined flexible measures' roles by maximizing technical efficiency.
- Applied the model to 28 German university hospitals.
- Conducted inefficiency decomposition and second-stage regression analysis.
Main Results:
- The proposed SBM-DEA model successfully handles flexible and integer measures without inflating efficiency scores.
- Inefficiency decomposition revealed "Third-party funding income" as the dominant inefficiency source in university hospitals.
- Regression analysis confirmed findings from inefficiency decomposition.
Conclusions:
- The novel SBM-DEA model offers a robust method for evaluating efficiency with complex data.
- Third-party funding policies and management are critical for improving university hospital efficiency.
- The model provides valuable insights into teaching and general inefficiencies in healthcare institutions.
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