Composite Index Creation Using AHP: Efficiency Optimization for the Health Care Industry

Type of Proposal

Oral presentation

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Faculty

Odette School of Business

Faculty Sponsor

Dr. Fazle Baki

Proposal

The growth of the health care industry, both in medicine and administration, increases the awareness of determining the efficiency of the services, utilities, and overall performance. The objective of this paper is to present a conceptual creation of an index that will quantify the efficiency of centers in the health care industry. Its proposed use will be as a determinant tool, where the users are able to pinpoint areas of inefficiency that require further action for improvement. The creation of a composite index to measure the health care industry’s efficiency simplifies both internal and external decisions made based on specific centers. It will be able to aid in public policy, which tasks itself with defining the optimal amount of hospitals capable of fulfilling the health care needs of designated areas. The indices allow for appropriate comparisons between hospitals or clinics, respectively, and their effectiveness on all levels of functionality. A modified version of the Analytical Hierarchy Process is the methodology incorporated in the creation of the composite index. AHP itself is an eigenvector method of calculating priorities which researchers have found to be a superior methodology for the weighing of a composite index. The index integrates sub-indices that are aggregated and weighted to determine overall efficiency. This method is evaluated using the local health care industry in Windsor, Canada.

Start Date

31-3-2017 2:00 PM

End Date

2017 3:20 PM

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Mar 31st, 2:00 PM Jan 1st, 3:20 PM

Composite Index Creation Using AHP: Efficiency Optimization for the Health Care Industry

The growth of the health care industry, both in medicine and administration, increases the awareness of determining the efficiency of the services, utilities, and overall performance. The objective of this paper is to present a conceptual creation of an index that will quantify the efficiency of centers in the health care industry. Its proposed use will be as a determinant tool, where the users are able to pinpoint areas of inefficiency that require further action for improvement. The creation of a composite index to measure the health care industry’s efficiency simplifies both internal and external decisions made based on specific centers. It will be able to aid in public policy, which tasks itself with defining the optimal amount of hospitals capable of fulfilling the health care needs of designated areas. The indices allow for appropriate comparisons between hospitals or clinics, respectively, and their effectiveness on all levels of functionality. A modified version of the Analytical Hierarchy Process is the methodology incorporated in the creation of the composite index. AHP itself is an eigenvector method of calculating priorities which researchers have found to be a superior methodology for the weighing of a composite index. The index integrates sub-indices that are aggregated and weighted to determine overall efficiency. This method is evaluated using the local health care industry in Windsor, Canada.