In this study, we estimated the dynamic change of efficiency scores of Japanese municipal hospitals in terms of these two divisions (Division 1: administration division; Division 2: medical-examination division).
The administration division tends to operate from behind closed doors and avoids blame for any failures.
The objective function of the administration division is to realize a sound financial situation through labor inputs and capital inputs.
"There was a sort of all-by-ourselves-ism that developed," said Sachio Nishiyama, chief manager of the systems administration division at the Mitsubishi Trust and Banking Corporation.
The objective function of the medical-examination division is to provide a certain amount of medical services using hospital beds that are maintained by the administration division at the same hospital.
The administration division provides medical beds to the medical-examination division, and the medical-examination division repays the revenue through the use of medical beds for inpatient services.
The administration division also has an incentive to generate sufficient medical revenue (to offset the medical expenses) and to use all available beds.
For Division 1 (administration division), we adopted two labor inputs and three capital inputs.
In addition, if we add variables related to the administration division in the BB model, we would suffer from inadequate correspondence between inputs and outputs.
The administration division carries out business management activities to contain medical expenses within medical revenue.
