Input measures included hospital bed size, service mix, labor force size, and nonlabor operating expense. Service mix is the sum of the number of services, both in- patient and outpatient services, offered by the hospital. Labor force size equaled the number of nonphysician, full- time employees plus the weighted (using a weight of 0.5) number of part time personnel employed. We used case- mix-adjusted admissions and outpatient visits as output measures. Case-mix-adjusted admissions were calculated as the number of hospital admissions multiplied by the hospital’s average Medicare case mix. These input and output variables are commonly used in previous studies (Chern & Wan, 2000; Ozcan, 2008). The primary data source for these variables was the AHA annual survey. We calculated efficiency scores for each hospital using the DEA frontier Excel software (Sherman & Zhu,
2006). Lower efficiency scores calculated through this soft- ware are interpreted as a hospital being relatively less efficient. If a hospital’s efficiency score equals 1, the hos- pital is categorized as efficient (Ozcan, 2008; Sherman & Zhu, 2006).
Input measures included hospital bed size, service mix, labor force size, and nonlabor operating expense. Service mix is the sum of the number of services, both in- patient and outpatient services, offered by the hospital. Labor force size equaled the number of nonphysician, full- time employees plus the weighted (using a weight of 0.5) number of part time personnel employed. We used case- mix-adjusted admissions and outpatient visits as output measures. Case-mix-adjusted admissions were calculated as the number of hospital admissions multiplied by the hospital’s average Medicare case mix. These input and output variables are commonly used in previous studies (Chern & Wan, 2000; Ozcan, 2008). The primary data source for these variables was the AHA annual survey. We calculated efficiency scores for each hospital using the DEA frontier Excel software (Sherman & Zhu,
2006). Lower efficiency scores calculated through this soft- ware are interpreted as a hospital being relatively less efficient. If a hospital’s efficiency score equals 1, the hos- pital is categorized as efficient (Ozcan, 2008; Sherman & Zhu, 2006).
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