Question: Data envelopment analysis can measure the relative efficiency of a group of hospitals. The following data from a particular study involving seven teaching hospitals include

Data envelopment analysis can measure the relative efficiency of a group of hospitals. The following data from a particular study involving seven teaching hospitals include three input measures and four output measures:
a. Formulate a linear programming model so that data envelopment analysis can be used to evaluate the performance of hospital D.
b. Solve the model.
c. Is hospital D relatively inefficient? What is the interpretation of the value of the objective function?

d. How many patient-days of each type are produced by the composite hospital?
e. Which hospitals would you recommend hospital D consider emulating to improve the efficiency of itsoperation?

Input Measures Full-Time Equivalent Nonphysicians 310.0 278.5 165.6 250.0 206.4 384.0 530.1 Bed-Days Available (1000s) 116.00 106.80 Hospital (1000s) 134.60 114.30 131.30 316.00 151.20 217.00 770.80 94.40 102.10 53.70 215.00 Output Measures Patient-Days (65 or older) (1000s) Patient-Davs (under 65) (1000s) 4952 55.63 25.77 Nurses Trained Interns Trained 47 Hospital 5531 37.64 32.91 33.53 32.48 48.78 58.41 291 156 141 160 157 26 21 55.30 81.92 119.70 92 89

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