Multiplier Models

Part of the International Series in Operations Research & Management Science book series (ISOR, volume 120)

When considering various inputs and outputs in the envelopment models discussed in earlier chapters, we made no judgment about the importance of one input vs. another, and we assumed that the all outputs had same importance. In fact, in our example data, we assumed outpatient visits would consume the resources at the same level as inpatient admissions. Similarly, in producing the patient outputs, we valued the contribution of nursing hours the same as the contribution of medical supplies. Beside these assumptions, DMUs in a DEA can become efficient by simply taking advantage of a particular input or output variable. Simply, a hospital can become efficient by emphasizing on favorable input or output. For instance, observing from the example data, Hospital 9 has relatively low nursing hours but a high amount of medical supplies. The low nursing hours may be the reason this hospital is at the efficiency frontier (see Fig. 2.7). In the DEA literature, these DMUs are sometimes called maverick DMUs that take advantage of these weak assumptions.


Assurance Region Output Weight Inpatient Admission Medical Supply Health Care Manager 
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© Springer Science+Business Media, LLC 2008

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