Consider a group of three hospitals. To simplify matters, assume that each hospital converts two inputs into
Question:
Consider a group of three hospitals. To simplify matters, assume that each hospital converts two inputs into three different outputs. (In a real DEA, there are typically many more inputs and outputs.) The two inputs used by each hospital are input 1 capital (measured by hundreds of hospital beds) input 2 labor (measured by thousands of labor hours used in a month) The outputs produced by each hospital are output 1 hundreds of patient-days during month for patients under age 14 output 2 hundreds of patient-days during month for patients between 14 and 65 output 3 hundreds of patient-days for patients over 65 The inputs and outputs for these hospitals are given in Table 4.12. Which of these three hospitals is efficient in terms of using its inputs to produce outputs?