Do Mergers Improve Hospital Productivity?

This paper complements the existing literature on hospital mergers by using data envelopment analysis (DEA) to generate both efficiency and productivity measures to ascertain whether hospital mergers, at least in the short run, result in performance gains. Using data over the period 1996-1998, we ap...

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Veröffentlicht in:The Journal of the Operational Research Society 2004-10, Vol.55 (10), p.1071-1080
Hauptverfasser: Ferrier, G D, Valdmanis, V G
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creator Ferrier, G D
Valdmanis, V G
description This paper complements the existing literature on hospital mergers by using data envelopment analysis (DEA) to generate both efficiency and productivity measures to ascertain whether hospital mergers, at least in the short run, result in performance gains. Using data over the period 1996-1998, we apply DEA, both pre-merger and post-merger, to set of hospitals that merged in 1997 as well as to a matching control group of non-merging hospitals over the same timeframe. A comparison of DEA efficiency scores and the Malmquist index values across the case and control hospitals allow us to assess whether any increase in productivity is the result of a merger rather than simply and randomly adding two hospitals' inputs and outputs together.
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subjects Acquisitions & mergers
Business and Management
Competition
Cost control
Cost reduction
Data envelopment analysis
Effects
Efficiency
Efficiency metrics
Health care policy
Health maintenance organizations
HMOs
Hospital admissions
Hospital costs
Hospital utilization rate
Hospitals
Management
Medicare
Nonprofit hospitals
Nonprofit organizations
Operations research
Operations Research/Decision Theory
Part Special Issue Paper
Part Special Issue: Data Envelopment Analysis
Productive efficiency
Productivity
Profits
Prospective payment systems
Reimbursement
Statistical median
Statistical significance
Studies
Workforce planning
title Do Mergers Improve Hospital Productivity?
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