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KMID : 0926620080130030069
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Korean Journal of Hospital Management
2008 Volume.13 No. 3 p.69 ~ p.93
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A Study on Quality-incorporating Models in Evaluation of Hospital Efficiency with Data Envelopment Analysis -An Analysis on National University Hospitals in Korea-
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Shin Dong-Wook
Jung Kee-Taig
Shin Chong-Gak
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Abstract
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Rising healthcare cost is a global phenomenon that justifies governments’ introduction of ’incentive regulation’ plan for the improvement of hospital efficiency. A number of previous studies tried to evaluate the efficiency of healthcare organization by using Data Envelopment Analysis(DEA), a common efficiency benchmarking method. However, there is a concern that this kind of efficiency evaluation could induce "quantity-quality trade-off". Moreover, as quality aspect is especially important in terms of ’effectiveness’ of health care, it should be considered in efficiency evaluation of healthcare organization. A number of different models were tried so far to incorporate quality aspect into DEA, however, none is universally recognized as a standard. Thus, in this study, previous quality-incorporating DEA models were categorized into 6 types according to the way of incorporating quality aspect, and strengths and limitations of each type were reviewed with a set of artificial data as an example. Based on this review, a new quality-incorporating efficiency evaluation model, named Quality-adjusted output DEA(QAO-DEA), was suggested. As an exploratory empirical analysis, technical efficiency of human resource were measured with different quality-incorporating DEA models, using 2004 data from National University Hospitals. In conclusion, Quality-adjusted output DEA(QAO-DEA) model seems to be one of the most desirable alternatives to incorporate quality aspect in efficiency evaluation of hospital, and deserves the consideration as a policy tool to induce simultaneous improvement of both efficiency and quality.
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KEYWORD
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Efficiency, Quality, Data Envelopment Analysis, DEA, Quality-adjusted output
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