Development of a financial performance index for hospitals: DEA approach

Development of a financial performance index for hospitals: DEA approach

0.00 Avg rating0 Votes
Article ID: iaor19962281
Country: United Kingdom
Volume: 47
Issue: 1
Start Page Number: 18
End Page Number: 26
Publication Date: Jan 1996
Journal: Journal of the Operational Research Society
Authors: ,
Keywords: health services, financial, measurement
Abstract:

This paper presents an innovative method of measuring and assessing financial performance for hospitals using data envelopment analysis (DEA). A 6% national sample of acute care hospitals was used to compare conventional ratio analysis with the financial performance index (FPI), an aggregate measure of financial performance, developed in this study. The results showed that FPI has captured what various financial ratios indicate independently. The development of a FPI across many financial ratios eases the comparison of an individual hospital with its peers. Development and uses of a FPI can also be applied to other industries.

Reviews

Required fields are marked *. Your email address will not be published.