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Strategic alliances’ effects over hospital efficiency and capacity utilization in México

Strategic alliances’ effects over hospital efficiency and capacity utilization in México This paper aims to investigate the efficiency implications of belonging to a strategic hospital alliance (SHA) and measuring the effects over capacity utilization of such agreements in a Mexican healthcare context.Design/methodology/approachData Envelopment Analysis (DEA) is the nonparametric methodology used, which supports both objectives. Technological gaps ratios are calculated by using DEA-metafrontier approach to compare efficiency between SHA members and a hospital’s control group. Also, hospital capacity utilization ratios are used as the maximum rate of output possible from fixed inputs in a frontier setting using directional distance functions. Data were collected from an alliance called Consorcio Mexicano de Hospitales in México, which has 29 general private hospitals and a group of 47 hospitals with same characteristics from a database made by the Instituto Nacional de Estadística y Geografía for year 2014.FindingsThe results indicate that efficiency is better at hospitals that belong to an alliance; it also shows an improvement of installed capacity management for hospital alliances in México.Originality/valueThe results can be useful for both private health organization managers and regulators themselves to adopt management practices that may end up having a favorable impact on cost and prices containment. Additionally, there are no previous studies neither in Mexico nor in Latin America that analyze the impact of strategic hospitality alliances on the efficiency and utilization of the capacity of private hospitals. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Academia Revista Latinoamericana de Administración Emerald Publishing

Strategic alliances’ effects over hospital efficiency and capacity utilization in México

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Publisher
Emerald Publishing
Copyright
© Emerald Publishing Limited
ISSN
1012-8255
DOI
10.1108/arla-11-2018-0248
Publisher site
See Article on Publisher Site

Abstract

This paper aims to investigate the efficiency implications of belonging to a strategic hospital alliance (SHA) and measuring the effects over capacity utilization of such agreements in a Mexican healthcare context.Design/methodology/approachData Envelopment Analysis (DEA) is the nonparametric methodology used, which supports both objectives. Technological gaps ratios are calculated by using DEA-metafrontier approach to compare efficiency between SHA members and a hospital’s control group. Also, hospital capacity utilization ratios are used as the maximum rate of output possible from fixed inputs in a frontier setting using directional distance functions. Data were collected from an alliance called Consorcio Mexicano de Hospitales in México, which has 29 general private hospitals and a group of 47 hospitals with same characteristics from a database made by the Instituto Nacional de Estadística y Geografía for year 2014.FindingsThe results indicate that efficiency is better at hospitals that belong to an alliance; it also shows an improvement of installed capacity management for hospital alliances in México.Originality/valueThe results can be useful for both private health organization managers and regulators themselves to adopt management practices that may end up having a favorable impact on cost and prices containment. Additionally, there are no previous studies neither in Mexico nor in Latin America that analyze the impact of strategic hospitality alliances on the efficiency and utilization of the capacity of private hospitals.

Journal

Academia Revista Latinoamericana de AdministraciónEmerald Publishing

Published: Apr 20, 2020

Keywords: Strategic hospital alliances; Metafrontier; Data envelopment analysis; Capacity utilization; CLADEA2018; Efficiency; L25; C61; H51; I18; Alianzas hospitalarias estratégicas; Meta-frontera; Análisis envolvente de datos; Utilización de la capacidad; CLADEA2018; Eficiencia; L25; C61; H51; I18

References