Q2. 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 its operation? f. Formulate a linear programming model that can be used to perform data envelopment analysis for hospital E. g. Solve the model. h. Is hospital E relatively inef"cient? What is the interpretation of the value of the objective function? i. Which hospitals are involved in making up the composite hospital? Can you make a general statement about which hospitals will make up the composite unit associated with a unit that is not inef"cient? Input Measures Hospital Full-Time Equivalent Nonphysicians Supply Bed-Days Expense Available (1000s) (1000s) A 310.0 134.60 116.00 B 278.5 114.30 106.80 165.6 131.30 65.52 250.0 316.00 94.40 E 206.4 151.20 102.10 F 384.0 217.00 153.70 G 530.1 770.80 215.00 Output Measures Patient-Days Patient-Days (65 or older) (under 65) Hospital (1000s) (1000s) Nurses Trained Interns Trained ABCDEFG A 55.31 49.52 291 47 37.64 55.63 156 32.91 25.77 141 33.53 41.99 160 32.48 55.30 157 48.78 81.92 285 432222 26 21 82 92 58.41 119.70 111 89