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. Where does the composite hospital have more output than hospital D? How much less of each input resource does the composite hospital require when compared to hospital D?

e. Which hospitals would you recommend hospital D consider emulating to improve the efficiency of its operation?

Hospital Bed-Days Available (1000s) 139.20 128.20 78.62 113.30 122.50 184.40 258.00 Input Measures Full-Time Supply Equivalent Expense Nonphysicians (1000) 372.0 161.50 334.2 171.40 198.2 157.60 300.0 379.20 247.7 181.44 460.8 260.40 636.1 925.00 Output Measures Patient-Days Patient-Days (65 or older) (under 65) (1000s) (1000) 66.37 59.90 45.17 66.76 39.49 30.92 40.24 50.39 38.98 66.36 58.44 98.30 70.09 143.64 Interns Trained Hospital Nurses Trained 349 187 169 56 31 192 25 188 342 110 133 107