Comparative Productivity in Healthcare: Using Data Envelopment Analysis to Measure Efficiency with Multiple Inputs and Outputs
Overview:
Data envelopment analysis (DEA) is a technique that is used to measure the multiple dimensions of performance (efficiency) of producing units. DEA allows the use of multiple inputs and outputs to develop a single efficiency score to measure comparative efficiency (performance) of hospitals, physicians, group practices.
The procedure of comparing the units’ efficiency can be formulated as a linear optimization problem. Analyzing the efficiency of units is then a set of linear optimization problems. DEA is being used to compare a group of service units to identify relatively inefficient ones, measure the magnitude of the inefficiencies and, by comparing the inefficient with the efficient ones, suggest ways and targets to reduce those inefficiencies.
Why should you Attend:
While one could find a rich literature on various aspects data envelopment analysis (DEA), it is typically presented as an academic mathematical development in the area of linear optimization which is difficult to use by a layman.
One should attend this webinar because it is focused on examples from the real hospital practice, not using the complicated formulas and mathematics of linear optimization theory. All presented examples are aided by the provided Excel spreadsheet with solver Add-in by the instructor with real hospital experience. His experience was presented in his widely cited book worldwide: Kolker, A., “Healthcare Management Engineering in Action”, 2nd Ed., Springer Nature, NY, 2024. The 1st Edition of this book was used as a main text for the training course by the National Health System, the UK, as well as by the Lubar School of business at the University of Wisconsin-Milwaukee for the graduate course on Healthcare delivery system and data analytics.
Areas Covered in the Session:
- Data Envelopment Analysis: What is it? What is it for?
- A concept of the efficiency frontier and a scoring function
- DEA as a linear optimization problem
- Examples of DEA using Excel Add-in Solver with explanation of the spreadsheet set up
- 8 hospitals: 2 Inputs and 2 Outputs
- 12 medical labs: 2 Inputs and 3 Outputs
- A network of 10 hospitals: 5 Inputs and 3 Outputs (based on the actual project within Froedtert Health Hospital System)
- Strength and limitations of DEA
- DEA software
Who Will Benefit:
- Nursing Managers
- Chief Nursing Officers
- Directors
- VP
Speaker Profile
Alexander is the lead editor and author of 2 books, 8 book chapters, 10 journal papers, and a speaker at 18 international conferences & webinars in the area of operations management and data analytics. As an adjunct faculty at the UW-Milwaukee Lubar School of Business, he developed and taught a graduate course Business 755-Healthcare Delivery Systems-Data Analytics. He worked 12 years for GE (General Electric) Healthcare as a Data Scientist and CT Detector design engineer, 3 years for Froedtert Hospital, the largest healthcare facility in Southern state of Wisconsin, and 5 years for Children’s Hospital of Wisconsin as a lead computer simulation and system improvement consultant.
Currently he is teaching a 12-sessions online course “Healthcare Operations Research and Management Science” for the UK, National Health System (NHS).