Reference no: EM131387447
Using the information below, develop a Linear Program to determine the best course of action for a community hospital. Using the results of the Linear Program prepare an executive summary 2-3 pages, outlining the best course of action and justifying your decision. Submit the following:
- An Excel file with your LP output
- Executive Summary
- Formulate this as a linear programming problem.
- Do a Sensitivity Analysis
- To get the most revenue, which service(s) should be offered?
- What is the optimal volume(s)?
- What is the total expected revenue from the new services?
- State any assumptions that go into your analysis
A community hospital is planning to expand its services to three new service lines in the medical diagnostic categories (MDCs) and their corresponding diagnostic related groupings (DRGs) shown in Table 10.5.1
TABLE EX 10.5.1.
MDC DRGs Description
2 36-47 Diseases and disorders of the foot
19 424-433 Mental diseases and disorders
21 439-455 Injury, poisoning, and toxic effects of drugs
Five common resources must to be allocated among these three new service lines according to which will bring the most revenue (using overall average DRG payments in a given MDC category). The resources are beds (measured as patient days), nursing staff, radiology, laboratory, and operating room (constraints). The health care manager in charge of this expansion project obtained the average consumption patterns of these resources for each MDC from other peer institutions, and estimated the resources that can be made available (per year) for the new service lines in Table EX 10.5.2:
TABLE EX 10.5.2.
Resource Category MDC-2 MDC-19 MDC-21 Available Resources
Length of stay (LOS) 3.67.1 4.919,710
Nursing hours 3 75.5 16,000
Radiology procedures 0.5 1.0 3,200
Laboratory procedures 1 1.5 3 6,800
Operating room 2 4 1,540
Average revenues from MDC-2, MDC-19, and MDC-21 are $18,885, $23,143, and $17,515, respectively.
Which parties is considered a stakeholder of a firm
: FINC620- Which one of the following parties is considered a stakeholder of a firm? A business formed by two or more individuals who each have unlimited liability for business debts is called a.
|
Understand the role of unions
: This exercise has several purposes. The main one is to have you understand the role of unions and assess whether they are relevant today. By looking at each of the prescribed websites, you should become more familiar with what unions do and how th..
|
Which curve shifts and what happens to exchange rate
: Suppose that US and Mexico are each other’s sole trading partners. The Fed, afraid that the economy is about to overheat, raises the U.S. interest rate. What happens when interest rate in US changes relative to Mexico? Which curve shifts and what hap..
|
Discuss about the post given below
: Briefly provide the title and describe your 2 choices from "programs" or "practices" (provide web links to each article). Which one was rated "NO EFFECTS" and why?Which one was rated "EFFECTIVE" and why? What is your overall impression of the www.cri..
|
Determine the best course of action for a community hospital
: Using the information below, develop a Linear Program to determine the best course of action for a community hospital. Using the results of the Linear Program prepare an executive summary 2-3 pages, outlining the best course of action and justifyi..
|
Consider an economy where negative supply shock happens
: Consider an economy where a negative supply shock happens. The supply shock is not accommodated by the Fed. Which of the following will be true? None of the listed options is correct. The inflation rate will rise. Output will go higher than its poten..
|
What has been your average return and holding period return
: The return pattern on your favorite stock has been 5%, 8%, -12%, 15%, 21% over the last five years. What has been your average return and holding period return over the last 5 years?
|
Calculate the amount of desired fiscal stimulus
: Draw the appropriate graph assuming that the economy is operating below full employment. Assuming the aggregate demand shortfall is $1466B and MPC is .72, calculate the amount of desired fiscal stimulus.
|
Can the corporation recover from the fire insurance company
: Thereafter, Peter B. Arson set fire to the building, and it was totally destroyed. Can the corporation recover from the fire insurance company on the $750,000 fire insurance policy? Why?
|