Managing Healthcare Services - Assignment

Victor Yoon

Managing Healthcare Services

Assignment 1

1. What is the average census of observation patients in the hospital?

        50 patients are admitted per day with 20% for obs. This means 10 patients are admitted         per day for obs. This is our average arrival rate (Lambda). The avg length of time of these         patients in the system is 1.2 days.

        so L = 10 x 1.2

               = 12 patients

1. Given the current patient flows, how large should the ED observation unit be to achieve a target utilization of 80%?

        If 80% target utilization is = 12 beds then x (ED observation unit size):

                0.8x = 12 beds

                x = 15 beds

1. It the average admitted patient represents $3,500 in profits to the hospital, and the average observation patient represents about $3,300 in profits, what is the profit flow per day resulting from patients who enter the hospital through the ED?

        Profit flow per day of obs:

                Since 12 pts is L, then obs patients result in 12 x 3300 = $39,600/day

        Profit flow per day of adm:

                L = (50 x 0.8) x 5.8 days

                   = 232

                Since 232 is L, then adm patients results in 232 x 3500 = $812,000/day

        Total profit = 39600 + 812000 = $851,600

1. If an observation unit of your recommended size is built, is the hospital’s profit increase measured in dollars per day?

        Profit flow per day of obs:

                12 x 3700 = 44,400

                44,000 - 39,600 = 4800

                An increase of $4800/day

1. If all vacated beds are vacated by admitted patients, how many new patients per day can be admitted? (Assume that all of the new patients stay an average of 5.8 days.)

        Since 15 new beds are created, L = 15. Using 5.8 as W