Reference no: EM131163905

Hope Valley Health Care (Revisited) Revisit Example 5.3 and revise the given data set so that all input and output measures are indexed. That is, each value on a particular input or output dimension is assigned its percentage relative to the highest value in the set. Using indexed data, redo the analysis.

(a) Which nursing homes are efficient?

(b) What are the efficiencies of the inefficient nursing homes?

(c) For each of the inefficient units, find the reference set and calculate the indexed inputs and outputs for a corresponding HCU. Then convert these indexed values to the original scale.

EXAMPLE:

The Hope Valley Health Care Association owns and operates six nursing homes in adjoining states. An evaluation of their efficiency has been undertaken, using two inputs and two outputs. The inputs are staffing labor (measured in average hours per day) and the cost of supplies (in thousands of dollars per day). The outputs are the number of patient-days reimbursed by third-party sources and the number of patient-days reimbursed privately. A summary of performance data is shown in the table below.

DMU	Staff hours per day	Supplies per day	Reimbursed paticnt days	Privately paid patient day%
Facility I	150	0.2	14,000	3500
Facility 2	400	0.7	14,000	21,000
Facility 3	320	1.2	42,000	10,300
Facility 4	520	2.0	28,000	42,000
Facility 5	350	1.2	19,000	25,000
Facility 6	320	0.7	14,000	15,000