Evaluating the Efficiency of Hospitals’ Perioperative Services Using Dea

  • Liam O’Neill
  • Franklin Dexter
Part of the International Series in Operations Research & Management Science book series (ISOR, volume 70)


Elective surgery typically generates 40 percent or more of a hospital’s total revenue, and individual surgeons almost always have a net positive contribution margin. Perioperative services include surgical operations, preoperative care of patients, and post-operative care. This chapter presents a method to identify best practices among hospitals’ perioperative services using Data Envelopment Analysis (DEA). This analysis included 44,033 procedures performed by 3,502 surgeons at 53 non-metropolitan Pennsylvania hospitals. Eight procedures, each performed by one surgical specialty, were selected. For each hospital, DEA 1) identifies untapped markets for surgery; 2) identifies relatively high and low procedure volumes among specialties; and 3) suggests a strategy for increasing surgical volume for inefficient hospitals. Findings may be used by managers of perioperative services to aid in resource allocation decisions, such as hiring and recruitment among different surgical specialties.

Key words

Data envelopment analysis Perioperative services 


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Copyright information

© Springer Science + Business Media, Inc. 2005

Authors and Affiliations

  • Liam O’Neill
    • 1
  • Franklin Dexter
    • 2
  1. 1.Department of Policy Analysis and ManagementCornell UniversityIthaca
  2. 2.Department of AnesthesiaUniversity of IowaIowa City

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