Measuring shared inefficiency between hospital cost centers Academic Article uri icon


MeSH Major

  • Efficiency, Organizational
  • Hospitals, State
  • Management Audit


  • In this article, a combination of data envelopment analysis, spreadsheet modeling and regression techniques is applied to a panel of nonprofit Washington State hospitals in an effort to determine whether (and if so, to what extent) inefficiency in one hospital cost center is shared with inefficiency in other cost centers. The findings suggest that a significant amount of inefficiency is shared across hospital cost centers. The authors further determine that certain cost centers contribute more to the overall performance of a given hospital than others. As such, managerial decisions and government policies designed to enhance hospital efficiency should be implemented differently, depending on the characteristics of the hospital in question.

publication date

  • February 2011



  • Academic Article



  • eng

Digital Object Identifier (DOI)

  • 10.1177/1077558710379224

PubMed ID

  • 21075753

Additional Document Info

start page

  • 55S

end page

  • 74S


  • 68


  • 1