Objective measurement of efficiency: applying single price model to rank hospital activities

Single price model is a recent approach to measurement of efficiency from assumptions and developments which widely differ from data envelopment analysis. Its purpose is to rank the activities objectively with independence of the decision-makerʹs opinions and preferences as subjective factors of ranking. In this paper, the previous version of the model is reformed in critical aspects, extended and applied to a case of 27 hospital units with real world information on two inputs and four outputs. In this revised version, the axiomatic basis is reduced to a single assumption, and new general formal proofs are provided. As objectively implemented, the complete ranking leads to the most efficient activity and the most productive scale size in multiple output/input problems.