Data Envelopment Analysis As a New Managerial Audit Methodology Test And Evalu
Data Envelopment Analysis As a New Managerial Audit Methodology Test And Evalu
H David Sherman
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H15 has the same output levels as HI (see Exhibits 2 and 3), but H15 uses an inefficient level of FTE's (x, ), bed days (X2), and supplies (xt) in providing treatment for regular patients (y, ). The inefficiencies introduced are highlighted by the circled values in Exhibit 2. (The development of the data base is further discussed in [13] and [14]). The efficiency rating results from DEA are summarized in table 1. Note that all the efficient DMU's (hospitals HI - H7) were accurately located as r...elatively efficient (efficiency rating = 1. 0). Among the inefficient DMU's (hospitals H8 - H15), six of these were accurately identified as inefficient and two were not located as inefficient (HIO and H13), This result illustrates the primary strength and limitation of DEA. All inefficient DMU's located will be strictly inefficient, i. E. , there are other DMU's In the observation set which are more efficient than those identified as inefficient via DEA. At the same time, DEA will not necessarily locate all the inefficient units, because it is locating inefficiency by comparing DMU's within the entire data set.
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