Provider experience and technical efficiency in the treatment of stroke patients: Data Envelopment Analysis approach

This study uses Data Envelopment Analysis to examine relationships between provider experience and technical efficiency in stroke treatment patients. Using 214 hospitals grouped according to stroke treatment experience, the study examines how the inputs—average length of stay (ALOS), occupational and physical therapy charges, and all other charges—are combined to treat mild and severe stroke cases. This study finds that, on average, technical efficiency improves with experience. However, although more experienced providers are on average deemed more technically efficient, they tend to have higher charges. The study further illustrates that the gap in case severity between efficient and inefficient providers widens as experience level increases. These findings suggest there is great potential for inefficient providers to alter practice patterns to those similar to efficient providers, in order to significantly reduce aggregate expenditures.