A Modified Three-Stage Data Envelopment Analysis: The Netherlands

In The Netherlands the care for the disabled accounts for 10% of total health care costs, or almost 1% of GNP. About half of these costs are devoted to the residential care for the mentally disabled. This study studied the amount of cost inefficiency in a sample of homes operating in 198. We first a...

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Bibliographic Details
Published in:The European journal of health economics 2005-03, Vol.6 (1), p.65-71
Main Authors: Blank, Jos L. T., Valdmanis, Vivian
Format: Article
Language:English
Subjects:
Allocative efficiency
Cost efficiency
Costs and Cost Analysis
Data envelopment analysis
Disabilities
Economic resources
Efficiency
Efficiency metrics
Efficiency, Organizational - economics
Government regulations
Health care costs
Health economics
Homes
Hospital beds
Humans
Mental Disorders - economics
Mental Disorders - rehabilitation
Models, Economic
Natural resources
Netherlands
Original Papers
Ratios
Residential Facilities - economics
Studies
Citations: Items that this one cites
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Summary:In The Netherlands the care for the disabled accounts for 10% of total health care costs, or almost 1% of GNP. About half of these costs are devoted to the residential care for the mentally disabled. This study studied the amount of cost inefficiency in a sample of homes operating in 198. We first apply a data envelopment analysis to our sample and then apply another stage-evaluating the nonradial slack of each input and the effects external factors have on them. After "correcting" for the external effects we find that technical and scale inefficiency disappears and cost efficiency increases by 6%. We attribute these findings with the strict regulation under which Dutch homes operate. Further, this approach can be applied to any service or market that faces governmental regulation.
ISSN:1618-7598
1618-7601
DOI:10.1007/s10198-004-0260-3