- Aug 2015
total offive variables in the frontierestimate: three input types in dollars, output in number of patient-days, andquality in estimated HSMR values.
So this is the model translated as:
number of patient-days(by hospital*) = HSMR value(ratio) + capital prices($) + labor($) + materials($)
- all the co-variants are also accounted by Hospital
Is appropriate the use of a deterministic model here? It seems to me that it will be less accurate than a probabilistic one, and that that could influence the results of the comparison of the different aggregation levels biasing the conclusions.
Details of the estimationprocess can be found in operations research textbooks (e.g., Banker, Charnes,and Cooper 1984; Ramanathran and Ramanathan 2003)
*Interesting reference for reviewing!