The growth of the health care industry, both in medicine and administration, increases the awareness of determining the efficiency of the services, utilities, and 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.

The creation of a composite index to measure the health care industry’s efficiency simplifies both internal and external decisions made for specific centers. It will aid in defining the optimal amount of hospitals that will fulfill 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. The Analytical Hierarchy Process is the methodology incorporated in the creation of the composite index. It is an eigenvector method of calculating priorities which the majority of 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 the overall efficiency. This method is evaluated using the local health care industry in Windsor, Canada.