Can data envelopment analysis provide a scalar index of 'value'?

Bryan E Dowd, Tami C Swenson, Robert L Kane, Shriram Parashuram, Robert Coulam

Research output: Contribution to journalArticle

8 Citations (Scopus)

Abstract

The concept of 'value' typically includes a combination of cost and quality measures. Some approaches to incorporating value into payment systems treat cost and quality as separate dimensions, but policymakers have expressed interest in a single scalar index that combines cost and quality. Treating risk-adjusted cost as an input and multiple measures of quality as outputs, we examine whether data envelopment analysis input efficiency is associated with higher quality and lower cost in a sample of physician practices using 2008 US Medicare claims data from Colorado. The findings suggest that input efficiency might provide a useful scalar measure of value for a value-based payment system for physician services.

Original languageEnglish (US)
Pages (from-to)1465-1480
Number of pages16
JournalHealth Economics (United Kingdom)
Volume23
Issue number12
DOIs
StatePublished - Jan 1 2014

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Costs and Cost Analysis
Physicians
Medicare

Keywords

  • cost
  • data envelopment analysis
  • payment
  • quality
  • value

Cite this

Can data envelopment analysis provide a scalar index of 'value'? / Dowd, Bryan E; Swenson, Tami C; Kane, Robert L; Parashuram, Shriram; Coulam, Robert.

In: Health Economics (United Kingdom), Vol. 23, No. 12, 01.01.2014, p. 1465-1480.

Research output: Contribution to journalArticle

Dowd, Bryan E ; Swenson, Tami C ; Kane, Robert L ; Parashuram, Shriram ; Coulam, Robert. / Can data envelopment analysis provide a scalar index of 'value'?. In: Health Economics (United Kingdom). 2014 ; Vol. 23, No. 12. pp. 1465-1480.
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