The Hospital Administrators at New Hope, County General, and City

question 48

Essay

The hospital administrators at New Hope, County General, and City East recently received notice of an impending state inspection of their facilities. Under new guidelines established to improve the overall health care system, state inspectors will be assessing the efficiency of each hospital. The staff at New Hope has suggested a mutual assistance program in preparation for the inspections and have proposed using DEA as a means to assess the efficiency of each facility. The data collected thus far is summarized in the following table. All data reflects averages compiled over the past six months.
Based on the following formulation, is City East efficient? If not, what input and output values should they aspire to in order to become efficient?

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Definitions:

Social Optimum

The ideal state of allocation of resources where social welfare is maximized, taking into account all costs and benefits to society.

Fire Extinguishers

Fire extinguishers are active fire protection devices used to extinguish or control small fires, often in emergency situations.

Subsidized

Financial support provided by the government or other institutions to reduce the cost of services or commodities.

Tax

Compulsory financial charges or levies imposed by a government on individuals or entities to fund public spending and government operations.