Relative efficiency in the spatial distribution of physicians' services

Abstract

This paper uses health status outputs with Data Envelopment Analysis to assess the relative efficiency of the use of physician labor inputs. The trends in physician population growth are examined to see if there is a link between physician population ratios and the health status of the communities they serve. Input efficiency scores are analyzed for Michigan counties with comparable population densities over a 10-year period. Overall, approximately 47 percent of Michigan counties operated with relative input efficiency during the decade. In addition to assigning an efficiency rating, Data Envelopment Analysis also identifies the efficiency reference set. The efficiency reference set can be used to develop a composite unit that produces the same output level as the inefficient unit, employing the most efficient combination of inputs.