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Two-Stage Data Envelopment Analysis in Healthcare: Concerns, Controversies, and Future Directions

In: Handbook on Data Envelopment Analysis in Business, Finance, and Sustainability Recent Trends and Developments

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  • Mehtap Çakmak Barsbay

Abstract

Data envelopment analysis (DEA) is the most widely used non-parametric method in healthcare operation management to measure technical, productive, and allocative efficiency. As healthcare is characterized by complex production processes, we need some other subsequent techniques. Thus, integrated with DEA models, additional estimation procedures have been applied to evaluate efficiency. Although the literature on DEA is prevalent, there exists a lack of evidence in the studies using two-stage DEA in healthcare efficiency analysis. This chapter aims to review publications about two-stage DEA, which is a specific variation of conventional DEA, and to explore how two-stage DEA procedures are prevalent in healthcare. Investigating the state of the art of two-stage DEA models can add value for researchers who plan to conduct research using DEA. This chapter offers a rapid review and bibliometric analysis to explore publications regarding the relevant topic. The number of publications reached a peak in 2021. Review articles focused on various healthcare specialties. Seventeen articles were related to hospitals and healthcare centers, and tobit regression remained the primary choice of analysis for the dependent variable in 11 articles. It was widely used across various units, such as health regions, health systems, and patient-level treatment. Some concerns and controversies were addressed to improve validation and prove practical usefulness.

Suggested Citation

  • Mehtap Çakmak Barsbay, 2024. "Two-Stage Data Envelopment Analysis in Healthcare: Concerns, Controversies, and Future Directions," World Scientific Book Chapters, in: Sabri Boubaker & Thanh Ngo (ed.), Handbook on Data Envelopment Analysis in Business, Finance, and Sustainability Recent Trends and Developments, chapter 6, pages 193-219, World Scientific Publishing Co. Pte. Ltd..
    • Handle: RePEc:wsi:wschap:9781800615786_0006
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    Keywords

    Data Envelopment Analysis; Business; Finance; Banking; Accounting; Sustainability; Efficiency; Performance; Productivity; Total Factor Productivity; Frontier Analysis;
    All these keywords.

    JEL classification:

    • C44 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Operations Research; Statistical Decision Theory
    • C5 - Mathematical and Quantitative Methods - - Econometric Modeling

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