Abstract
The goal of this study is to present a DEA-based fuzzy multi-criteria decision making model for firms in the health care industry in order to enhance their business performance. The study demonstrates a real-life use of the proposed model, mainly designed for hospitals. Data envelopment analysis enhanced with fuzzy analytic hierarchy process are collectively utilized to quantify the data and structure the model in decision-making. The juxtaposition of the two methods is used to compile a ranked list of multiple proxies containing diverse input and output variables which occur in two stages. This hybrid model provides several benefits, one of which is the ability to make the most appropriate decision considering the value of the weights determined by the data from the hybrid model.
Similar content being viewed by others
References
Adler, N., Friedman, L., & Sinuany-Stern, Z. (2002). Review of ranking methods in the data envelopment analysis context. European Journal of Operational Research, 140(2), 249–265.
Barnum, D. T., Walton, S. M., Shields, K. L., & Schumock, G. T. (2011). Measuring hospital efficiency with data envelopment analysis: Nonsubstitutable vs. substitutable inputs and outputs. Journal of Medical Systems, 35, 1393–1401.
Bhat, R., Verma, B. B., & Reuben, E. (2001). Hospital efficiency: An empirical analysis of district hospitals and grant in aid hospitals in Gujarat. Journal of Health Management, 3(2), 167–197.
Charnes, A., Cooper, W. W., & Rhodes, E. (1978). Measuring the efficiency of decision making units. European Journal of Operational Research, 2(6), 429–444.
Cook, W. D., Liang, L., & Zhu, J. (2010). Measuring performance of two-stage network structures by DEA: A review and future perspective. Omega, 38, 423–430.
Cook, W. D., Tone, K., & Zhu, J. (2014). Data envelopment analysis: Prior to choosing a model. Omega, 44, 1–4.
Du, J., Wang, J., Chen, Y., Chou, S.-Y., & Zhu, J. (2014). Incorporating health outcomes in Pennsylvania hospital efficiency: An additive super-efficiency DEA approach. Annals of Operations Research, 221(1), 161–172.
Emrouznejad, A. (2001). DEA HomePage, Warwick Business School Coventry CV4 7AL, UK, 1995-2001. http://www.deazone.com/books/DEA-socioEcoPlanning.pdf.
Farrell, M. J. (1957). The Measurement of Productive Efficiency. Journal of the Royal Statistical Society, 120(3), 253–290.
Friedman, L., & Sinuany-Stern, Z. (1997). Scaling units via the canonical correlation analysis in the DEA context. European Journal of Operational Research, 100(3), 629–637.
Ganley, J. A., & Cubbin, J. S. (1992). Public sector efficiency measurement: Applications of data envelopment analysis. Amsterdam: Elsevier.
Gjuffrida, A. (1999). Productivity and efficiency changes in primary care: A Malmquist index approach. Health Care Management Science, 2, 11–26.
Golany, B. (1988). An interactive MOLP procedure for the extension of data envelopment analysis to effectiveness analysis. Journal of the Operational Research Society, 39(8), 725–734.
Golany, B., & Roll, Y. A. (1994). Incorporating standards via data envelopment analysis. In A. Charnes, W. W. Cooper, A. Y. Lewin, & L. M. Seiford (Eds.), Data envelopment analysis: Theory, methodology and applications. Norwell, MA: Kluwer Academic Publishers.
Halme, M., Joro, T., Korhonen, P., Salo, S., & Wallenius, J. (1999). A value efficiency approach to incorporating preference information in data envelopment analysis. Management Science, 45(1), 103–115.
Hollingsworth, B., Dawson, P. J., & Maniadaleis, N. (1999). Efficiency measurements of health care: A review of non-parametric methods and applications. Health Care Management Science, 2(3), 161–172.
Kahraman, C., Ruan, D., & Dogan, I. (2003). Fuzzy group decision-making for facility location selection. Information Sciences, 157, 135–153.
Kahraman, C., Ruan, D., & Ethem, T. (2002). Capital budgeting techniques using discounted fuzzy versus probabilistic cash flows. Information Sciences, 42, 57–76.
Kontodimopoulos, N., & Niakas, D. (2005). Efficiency measurement of hem dialysis units in Greece with data envelopment analysis. Health Policy, 71, 195–204.
Kontodimopoulos, N., & Niakas, D. (2006). A 12-year analysis of Malmquist total factor productivity in dialysis facilities. Journal of Medical Systems, 30, 333–342.
Kornbluth, J. S. H. (1991). Analysing policy effectiveness using cone restricted data envelopment analysis. Journal of the Operational Research Society, 42(12), 1097–1104.
Lavado, R. F., & Cabanda, E. C. (2009). The efficiency of health and education expenditures in the Philippines. Central European Journal of Operations Research, 17, 275–291.
Linna, M. (1998). Measuring hospital cost efficiency with panel data models. Econometrics and Economics, 7, 415–427.
Mikhailov, L. (2003). Deriving priorities from fuzzy pair wise comparison judgments. Fuzzy Sets and Systems, 134, 365–385.
Ozgen, H., & Ozcan, Y. (2004). Longitudinal analysis of efficiency in multiple output dialyses. Health Care Management Sciences, 7, 253–261.
Rouyendegh, B. D. (2011). The DEA and intuitionistic fuzzy TOPSIS approach to departments’ performances: A pilot study. Journal of Applied Mathematics,. doi:10.1155/2011/712194.
Rouyendegh, B. D., & Erol, S. (2010). The DEA- FUZZY ANP Department Ranking Model Applied in Iran Amirkabir University. Acta Polytechnica Hungarica, 7, 103–114.
Saaty, T. L. (1980). The Analytic Hierarchy Process. New York: McGraw-Hill.
Saaty, T. L., & Vargas, L. G. (2006). Decision making with the analytic network process (pp. 1–23). Berlin: Springer.
Sinuany-Stern, Z., Mehrez, A., & Hadad, Y. (2000). An AHP/DEA methodology for ranking decision making units. International Transactions in Operational Research, 7, 109–124.
Tanbour, M. (1997). The impact of health care policy initiatives on productivity. Health Economics, 6, 57–70.
Wang, Y. M., Liu, J., & Elhag, T. M. S. (2008). An integrated AHP-DEA methodology for bridge risk assessment. Computers and Industrial Engineering, 54(3), 1–13.
Zadeh, L. A. (1965). Fuzzy sets. Information and Control, 8(3), 338–353.
Zhu, J. (2015). DEA based benchmarking models. International Series in Operations Research and Management Science, 221, 291–308.
Author information
Authors and Affiliations
Corresponding author
Rights and permissions
About this article
Cite this article
Rouyendegh, B.D., Oztekin, A., Ekong, J. et al. Measuring the efficiency of hospitals: a fully-ranking DEA–FAHP approach. Ann Oper Res 278, 361–378 (2019). https://doi.org/10.1007/s10479-016-2330-1
Published:
Issue Date:
DOI: https://doi.org/10.1007/s10479-016-2330-1