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Assessing overall, technical, and scale efficiency among home health care agencies

Author

Listed:
  • Vivian G. Valdmanis

    (Grand Valley State University
    CNRS, IÉSEG School of Management, Univ. Lille, UMR 9221-LEM Lille Economie Management)

  • Michael D. Rosko

    (Widener University
    University of St. Andrews)

  • Hervé Leleu

    (CNRS, IÉSEG School of Management, Univ. Lille, UMR 9221-LEM Lille Economie Management)

  • Dana B. Mukamel

    (University of California)

Abstract

While home health care agencies (HHAs) play a vital role in the production of health, little research has been performed gauging their efficiency. Employing a robust approach to data envelopment analysis (DEA) we assessed overall, technical, and scale efficiency on a nationwide sample of HHAs. After deriving the three efficiency measures, we regressed these scores on a variety of environmental factors. We found that HHAs, on average, could proportionally reduce inputs by 28 % (overall efficiency), 23 % (technical efficiency) and 6 % (scale efficiency). For-profit ownership was positively associated with improvements in overall efficiency and technical efficiency and chain ownership was positively associated with global efficiency. There were also state-by-state variations on all the efficiency measures. As home health becomes an increasingly important player in the health care system, and its share of national health expenditures increases, it has become important to understand the cost structure of the industry and the potential for efficiencies. Therefore, further research is recommended as this sector continues to grow.

Suggested Citation

  • Vivian G. Valdmanis & Michael D. Rosko & Hervé Leleu & Dana B. Mukamel, 2017. "Assessing overall, technical, and scale efficiency among home health care agencies," Health Care Management Science, Springer, vol. 20(2), pages 265-275, June.
    • Handle: RePEc:kap:hcarem:v:20:y:2017:i:2:d:10.1007_s10729-015-9351-1
    DOI: 10.1007/s10729-015-9351-1
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    2. Mustapha D. Ibrahim & Sahand Daneshvar & Mevhibe B. Hocaoğlu & Olasehinde-Williams G. Oluseye, 2019. "An Estimation of the Efficiency and Productivity of Healthcare Systems in Sub-Saharan Africa: Health-Centred Millennium Development Goal-Based Evidence," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 143(1), pages 371-389, May.
    3. Onofrio Resta & Emanuela Resta & Alberto Costantiello & Angelo Leogrande, 2023. "Elderly People Treated in Integrated Home Care in Italian Regions: A Metric Approach," Working Papers hal-04367727, HAL.
    4. Marouene Chaieb & Jaber Jemai & Khaled Mellouli, 2020. "A decomposition - construction approach for solving the home health care scheduling problem," Health Care Management Science, Springer, vol. 23(2), pages 264-286, June.
    5. Genave, Anna & Blancard, Stéphane & Garabedian, Sabine, 2020. "An assessment of energy vulnerability in Small Island Developing States," Ecological Economics, Elsevier, vol. 171(C).

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