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

 
 
 
 
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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 objec- tive function? Input Measures Full-Time Supply Bed-Days Equivalent Expense Available Hospital Nonphysicians (1000s) (1000s) ABCDEFO 310.0 134.60 116.00 278.5 114.30 106.80 165.6 131.30 65.52 250.0 316.00 94.40 206.4 151.20 102.10 384.0 217.00 153.70 G 530.1 770.80 215.00 Output Measures Hospital Patient-Days (65 or older) Patient-Days (under 65) Nurses Interns (1000s) (1000s) Trained Trained ABCDEFO G 55.31 49.52 291 47 37.64 55.63 156 3 32.91 25.77 141 26 33.53 41.99 160 21 32.48 55.30 157 82 48.78 81.92 285 92 58.41 119.70 111 89 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?

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