Visualizing Production Surfaces in 3D Diagrams

During the last four decades Data Envelopment Analysis (DEA) has attracted considerable attention in the OR community. Using DEA, the efficiency frontier is constructed based on assumptions concerning the production possibility set rather than a priori defining a functional relationship between inputs and outputs. In this contribution, we propose an algorithm to visualize the efficiency surface in a 3D diagram and to extract isoquants from the efficient hull based on different RTS assumptions which might be particularly helpful for presentation purposes. In doing so, we extend the existing literature which has concentrated on the visualization of production frontiers in 2D diagrams to the visualization of efficient rather than fully efficient hulls in 3D diagrams. Displaying a fully efficient hull, however, does not reflect all properties of the production possibility set as weakly efficient frontier segments are missing

Productivity and quality of Dutch hospitals during system reform

This study addresses the productivity of Dutch hospitals since the start of the health systems reform in 2005. We consider DEA based measures, which include efficiency and quality for the complete set of Dutch hospitals and present cross-sectional and longitudinal analysis. In particular, we consider how hospital efficiency has developed. As the reform created an environment of regulated competition, we pay special attention to relative efficiency. Our results suggest that the differences in efficiency among hospitals have become larger. In the years 2009–2010, the number of hospitals identified as (close to) efficient by DEA analysis decreased

Does prospective payment increase hospital (in)efficiency? Evidence from the Swiss hospital sector

Several European countries have followed the USA in introducing prospective payment for hospitals with the expectation of achieving cost efficiency gains. This article examines whether theoretical expectations of cost efficiency gains can be empirically confirmed. In contrast to previous studies, the analysis of hospitals in Switzerland provides a comparison of a retrospective per diem payment system with a prospective global budget and a payment per patient case system. Using a sample of approximately 90 public financed Swiss hospitals during the years 2004–2009 and Bayesian inference of a standard and a random parameter frontier model, cost efficiency gains are found, particularly with payment per patient case. Prospective payment, designed to put hospitals at operating risk, is more effective in terms of cost reduction than the retrospective alternative. However, hospitals are heterogeneous with respect to their production technologies, making a random parameter frontier model the superior specification for Switzerland