Management of nursing homes using data envelopment analysis.
Data envelopment analysis (DEA) is used to evaluate the relative technical efficiency and assist in the management of a chain of nursing homes. As with any DEA model, variables chosen are particularly important. The study looks at two possibly critical issues. The first is the appropriateness of models that include only financial and economic measures to evaluate administrators when quality care is an expected output. The second issue is the appropriateness of using noncontrollable variables, in this case operating income, to evaluate administrators. We show how efficiency scores differ when quality variables and/or operating income are included. We also demonstrate the usefulness of DEA information to both the home administrator and chain managers for improving operating efficiency.
Kleinsorge
I K
IK
Department of Accounting, Oregon State University, Corvallis 97331.
Karney
D F
DF
D003365:Costs and Cost Analysis / Q000379:methods / Q000706:statistics & numerical data; D003625:Data Collection; D003659:Decision Making, Organizational; D004526:Efficiency; D005069:Evaluation Studies as Topic; D005376:Financial Management / Q000379:methods / Q000706:statistics & numerical data; D005102:Health Expenditures / Q000706:statistics & numerical data / Q000639:trends; D007615:Kansas; D008330:Management Audit / Q000379:methods*; D008962:Models, Theoretical; D009096:Multi-Institutional Systems / Q000191:economics / Q000458:organization & administration / Q000706:statistics & numerical data; D009735:Nursing Homes / Q000191:economics / Q000458:organization & administration* / Q000706:statistics & numerical data; D011785:Quality Assurance, Health Care / Q000458:organization & administration