A study on healthcare supply chain management efficiency: using bootstrap data envelopment analysis

The aims of this study are to analyze the efficiency of players comprising the healthcare supply chain comparatively, and to investigate the relationship between these different types of efficiency, eventually seeking the way to optimize a healthcare supply chain. To achieve the aims, the players comprising a healthcare supply chain are classified either into manufacturers, distributors, wholesalers and retailers based on industry, or into the healthcare system and the non-healthcare system based on the system. The subjects are medical institutions comprising a healthcare supply chain. They have been selected as “The Healthcare Supply Chain Top 25” by Gartner for 5 years in a row from 2012 to 2016. The bootstrap data envelopment analysis (DEA) and correlation analysis are used. The results are as follows. Players with relatively high competitive efficiency (wholesalers and retailers) can achieve high managerial efficiency even if they pay relatively less attention to supply chain efficiency while players with low competitive efficiency (manufacturers and distributors) should focus on supply chain efficiency to maintain managerial efficiency. In the healthcare system, no significant correlation was observed between managerial efficiency, supply chain efficiency and competitive efficiency. However, the analysis showed that there was a significant positive correlation between the managerial efficiency and the competitive efficiency in the non-healthcare system. This study expands the field of the healthcare supply chain management efficiency.

[1]  Yuehwern Yih,et al.  A simulation-based study of distribution strategies for pharmaceutical supply chains , 2012 .

[2]  Jonchi Shyu,et al.  Measuring the true managerial efficiency of bank branches in Taiwan: A three-stage DEA analysis , 2012, Expert Syst. Appl..

[3]  S. Haavik.  Building a demand-driven, vendor-managed supply chain. , 2000, Healthcare financial management : journal of the Healthcare Financial Management Association.

[4]  Gert P. Westert,et al.  Supply chain management practices for improving patient‐oriented care , 2011 .

[5]  M. Beaulieu,et al.  Hybrid stockless: a case study , 2002 .

[6]  Joe Zhu,et al.  DEA models for supply chain efficiency evaluation , 2006, Ann. Oper. Res..

[7]  Gary D. Ferrier,et al.  Incorporating quality into the measurement of hospital efficiency: a double DEA approach , 2013 .

[8]  D. C. Roark.  Managing the healthcare supply chain. , 2005, Nursing management.

[9]  A. Langerman,et al.  Efficiency improvement in the operating room. , 2016, The Journal of surgical research.

[10]  T. Cheng,et al.  First to market: Is technological innovation in new product development profitable in health care industries? , 2010 .

[11]  Rachna Shah,et al.  Explaining Anomalous High Performance in a Health Care Supply Chain , 2008, Decis. Sci..

[12]  E. Biørn,et al.  The Effect of Activity-Based Financing on Hospital Efficiency: A Panel Data Analysis of DEA Efficiency Scores 1992–2000 , 2003, Health care management science.

[13]  Nilay Shah,et al.  Pharmaceutical supply chains: key issues and strategies for optimisation , 2004, Comput. Chem. Eng..

[14]  B. Hollingsworth,et al.  Efficiency measurement of health care: a review of non‐parametric methods and applications , 1999, Health care management science.

[15]  Emmanuel Thanassoulis,et al.  Applied data envelopment analysis , 1991 .

[16]  Nurul Fadly Habidin,et al.  Exploring lean healthcare practice and supply chain innovation for Malaysian healthcare industry , 2014 .

[17]  D. Walker.  Does participation in health information exchange improve hospital efficiency? , 2018, Health care management science.

[18]  Håkan Aronsson,et al.  Developing lean and agile health care supply chains , 2011 .

[19]  R. Uthayakumar,et al.  Pharmaceutical supply chain and inventory management strategies: Optimization for a pharmaceutical company and a hospital , 2013 .

[20]  E. Schneller,et al.  Strategic Management of the Health Care Supply Chain , 2006 .

[21]  Jan Schoenfelder,et al.  The use of Data Envelopment Analysis (DEA) in healthcare with a focus on hospitals , 2019, Health care management science.

[22]  Joe Zhu,et al.  Incorporating health outcomes in Pennsylvania hospital efficiency: an additive super-efficiency DEA approach , 2014, Ann. Oper. Res..

[23]  Cláudia S. Sarrico,et al.  Pitfalls and protocols in DEA , 2001, Eur. J. Oper. Res..

[24]  Kathleen E. McKone-Sweet,et al.  The Ailing Healthcare Supply Chain: A Prescription for Change , 2005 .

[25]  A. Potter,et al.  Healthcare supply chain management in Malaysia: a case study , 2009 .

[26]  Jeff Parker,et al.  The future of the healthcare supply chain: suppliers wield considerable power, but healthcare organizations can benefit from virtual centralization of the supply chain , 2008 .

[27]  Yasar A. Ozcan,et al.  Data Envelopment Analysis Comparison of Hospital Efficiency and Quality , 2008, Journal of Medical Systems.

[28]  Jeffrey P. Harrison,et al.  Efficiency of Federal Hospitals in the United States , 2004, Journal of Medical Systems.

[29]  Y A Ozcan,et al.  Physician benchmarking: measuring variation in practice behavior in treatment of otitis media , 1998, Health care management science.

[30]  Y. Lirov,et al.  E-commerce for healthcare supply procurement. , 2001, Journal of healthcare information management : JHIM.

[31]  A. Harrison,et al.  Supply chain management: theory, practice and future challenges , 2006 .

[32]  Marion S. Rauner,et al.  A cross-national comparison and taxonomy of DEA-based hospital efficiency studies , 2008 .

[33]  A. Charnes,et al.  Some Models for Estimating Technical and Scale Inefficiencies in Data Envelopment Analysis , 1984 .

[34]  Marcus Brandenburg,et al.  Supply chain efficiency, value creation and the economic crisis – An empirical assessment of the European automotive industry 2002–2010 , 2016 .

[35]  Lawrence L. Martin,et al.  Assessing the Performance of Municipal Police Services Using Data Envelopment Analysis: An Exploratory Study , 1999 .

[36]  R. Pacheco,et al.  Managerial efficiency of Brazilian airports , 2003 .

[37]  Yasar A Ozcan,et al.  Longitudinal Analysis of Efficiency in Multiple Output Dialysis Markets , 2004, Health care management science.

[38]  P. W. Wilson,et al.  Sensitivity Analysis of Efficiency Scores: How to Bootstrap in Nonparametric Frontier Models , 1998 .

[39]  David D. Dobrzykowski,et al.  A structured analysis of operations and supply chain management research in healthcare (1982–2011) , 2014 .

[40]  Ik-Whan G. Kwon,et al.  Healthcare supply chain management; strategic areas for quality and financial improvement , 2016 .

[41]  James R Langabeer,et al.  The economics of cancer care: longitudinal changes in provider efficiency , 2009, Health care management science.

[42]  Paul Lillrank,et al.  Processes, episodes and events in health service supply chains , 2011 .

[43]  M. Marr,et al.  THE EFFECT OF A SINKING FUND ON THE REOFFERING YIELDS OF NEW PUBLIC UTILITY BONDS , 1989 .

[44]  P. Hall.  On the Number of Bootstrap Simulations Required to Construct a Confidence Interval , 1986 .

[45]  Alexander E. Ellinger,et al.  The influence of supply chain management competency on customer satisfaction and shareholder value , 2012 .

[46]  Abraham Charnes,et al.  Measuring the efficiency of decision making units , 1978 .

[47]  Yasar A. Ozcan,et al.  An examination of competition and efficiency for hospital industry in Turkey , 2015, Health care management science.

[48]  Arun Kumar,et al.  Supply chain redesign in the healthcare industry of Singapore , 2008 .