Inverse revenue and cost efficiency with budget and revenue constraints: applying hospital revenue and budget planning models

Tahere Sayar, Mojtaba Ghiyasi and Jafar Fathali

International Journal of Mathematics in Operational Research, 2023, vol. 25, issue 4, 511-526

Abstract: In basic inverse DEA problems, the goal is to find the least number of inputs to produce the desired number of outputs with the current efficiency level (input oriented) or find optimal output for the desired amount of input with the current efficiency level (output oriented). In the current paper, we propose new models of inverse DEA problems when input prices are available. We consider not only the technical and cost efficiency simultaneously but also the income level of production units. In comparison with the existing model including basic inverse and cost-revenue based models, we have more flexibility in terms of determining simultaneously input and output levels in our models. We utilise proposed models for the efficiency analysis and further post input-output and planning study of hospitals in Mashhad, Iran. Primary results show the need for equipment, namely, active bed in the expansion planning.

Keywords: DEA; inverse DEA; cost efficiency; revenue efficiency; income; budget; hospital. (search for similar items in EconPapers)
Date: 2023
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