DEA Efficiency with an Additional Constraint Review Exercise. Add constraints that require virtual outputs of at least 2 percent.
(a) With the additional constraints, calculate the efficiencies of the hospitals. Comparing the original analysis, what patterns do you see?
(b) Repeat the analysis with a minimum of 10 percent on the virtual outputs.
(c) What are the advantages and disadvantages of using the additional constraint?
Exercise:
Evaluating Hospital Efficiency DEA has been used to measure the relative efficiency of a group of hospitals. This study involved seven teaching hospitals; data on three input measures and four output measures are provided in Table.
(a) Perform a DEA evaluation for this set of units, listing the efficiency for each hospital.
(b) Consider the performance of Hospital D. What is the interpretation of the efficiency measure for Hospital D?
(c) Which hospitals would you recommend Hospital D consider emulating to improve its efficiency?
(d) What are the inputs and outputs of the HCU for Hospital D?