Issue Brief: Florida Hospital System
With the healthcare industry being one of the most important industries in the state of Florida, it is essential that the industry is aiming to function in the most efficient way. Hospital efficiencies affect a variety of different people in different ways. Community members want efficient hospitals so they can experience lower wait times and a greater quality of service. On the other side, those who work behind the scenes of hospitals want to lower the costs as much as possible while ensuring all their resources are being utilized. Efficiency levels affect both consumers and producers, making it an important topic to further research.
In this issue brief, we use data from the American Hospital Directory and perform a Data Envelopement Analysis (DEA) using different inputs and outputs. DEA is a linear programming technique that has been around for just under half a century. Using both operations and economics research, this method is known to be used to measure efficiency.
The results of the study showed that the majority of hospitals fall above the average efficiency, when looking at Florida as a whole and also when looking at Southwest Florida.