The purpose of this study was to assess the efficiency of psychiatric hospitals. Data Envelopment Analysis was used to examine the technical efficiency for sample of the 85 profit and not-for-profit psychiatric hospitals. Results suggests reduction of excessive resource use by all inefficient facilities would result, on average, in a $7.2 million dollar savings in operational expenses, a total of 1715 FTEs in labor reductions, and a reduction of 1129 beds.
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