In this study the authors assess the performance of US teaching hospitals operating in 1995. Since teaching hospitals must increasingly compete with non-teaching hospitals for managed care contracts based on price, decreasing costs can only come from either reducing inefficiencies or decreasing the 'public good' production of teaching and research. The study used a data envelopment analysis (DEA) approach to measure the relative technical and scale efficiencies on a sample of 254 US teaching hospitals. The next step of the research was to assess in a bivariate context the effect market competition had on the teaching hospitals in the sample.
Grosskopf, S.; Margaritis, D.; Valdmanis, V. Competitive effects on teaching hospitals. European Journal of Operational Research (2004) 154 (2) 515-525. [DOI: 10.1016/S0377-2217(03)00185-1]