Efficiency Measurement of Hospitals: Issues and Extensions

Joseph Sarkis and Srinivas Talluri

International Journal of Operations and Production Management, Vol. 22, No. 3, pp. 306-313, 2002.

In a recent paper on measuring efficiency of hospitals by Al-Shammari (1999) a set of fifteen hospitals were compared across three years with respect to multiple inputs and outputs. Data envelopment analysis (DEA) was utilized in the evaluation process. The results of this study provide some very useful managerial insights into evaluation and improvement of hospital performance. In this paper, we address certain issues that have not be considered in Al-Shammari's (1999) work, and provide extensions to the proposed methodology in deriving additional findings and conclusions for efficiency measurement of hospitals. These results are valuable contributions for both managers and researchers.


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