• The DEA approach uses the following four ideas to
determine whether a hospital is efficient. 1. No hospital can be more than 100% efficient. Therefore, the efficiency of each hospital is constrained to be less than or equal to 1. To make this a linear constraint, we express it in this form: Value of hospital’s outputs Value of hospital’s inputs
Winston/Albright Practical Management Science, 4e South-Western/Cengage Learning