Article Abstract

Applying non-parametric methods measuring economic performance: a case of community hospitals in the State of New York

Authors: Chul-Young Roh

Abstract

Background: Community hospitals in New York State hold a unique position in turbulent era, while community hospitals are the hub of healthcare delivery in State of New York .The primary purpose of this study is to measure the economic performance of community hospitals in the State of New York that provide general and acute healthcare services from 2001 to 2014 applying non-parametric approaches.
Methods: To estimate the efficiency of community hospitals, this study uses data envelopment analysis (DEA) that corporate three input (total expenses, beds and FTEs) and three output ones (admissions, daily census and outpatients). Data is extracted from Annual Survey of Hospitals from 2001 to 2014.
Results: The average efficiency score of the community hospital in the State of New York is 0.882 and the average of scale efficiency is 0.925, respectively, for the 14 years. This study reports that rural community hospitals are more efficient than urban community hospitals for the 14 years, and large-size community hospitals are more efficient than medium and small-size hospitals. This study also confirms that public community hospitals in the State of New York are more efficient than non-profit hospitals.
Conclusions: To improve hospitals’ competitiveness and find an alternative business model, the healthcare stockholders who include hospital administrators, creditors, healthcare consultants, and policy makers, need to pay careful attention to the economic performance of community hospitals in relation to their capacity. This study is the first one to evaluate the economic efficiency of community hospitals applying non-parametric approaches and explore the factors that influence the performance of community hospitals in the State of New York.