Maximizing Revenue for Mount Sinai Hospital
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ScribdTranslationsMaximizing Revenue for Mount Sinai Hospital
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ScribdTranslationsMount Sinai Hospital in New Orleans is a large private hospital with 600 beds.
has laboratories, operating rooms, and X-ray equipment. To increase revenue, management
The hospital has decided to build a new wing with 90 beds on an adjacent lot used in the
current situation as parking for staff. The management believes that the laboratories, the
Operating rooms and the X-ray department are not being used to full capacity and does not consider
necessary to expand in order to treat additional patients. However, the increase of 90
it involves deciding how many beds should be assigned to the medical area (medical patients) and
how many to the surgical area (surgical patients).
The accounting and medical records departments of the hospital have provided the
The average length of stay in the hospital for a medical patient is 8 days, and the
The average medical patient generates an income of $2,280. The median stay in the hospital is
A surgical patient is 5 days old, and generates income of 1,515 dollars. The laboratory is capable
to perform 15,000 more annual tests than it currently does. An average medical patient
requires 3.1 laboratory tests, while the average for a surgical patient is 2.6
laboratory tests. Additionally, the average medical patient needs a session of X-rays, while
that the average surgical patient needs 2 X-ray sessions. If the hospital were to increase its
capacity in 90 beds, the X-ray department could perform at no significant additional cost
up to 7,000 X-ray sessions. Finally, management estimates that up to 2,800 could be conducted.
more operations in the existing operating rooms. Medical patients, of course, do not need
surgical intervention, while generally each surgical patient undergoes a
intervention.
Formulate this problem in such a way that determines the number of medical beds and the number of
surgical beds that should be added to maximize revenue. Consider that the
hospital is open 365 days a year. Medical patients
P laboratory Session Intervention Stay (days) Income (dollars)
X-rays surgical
Patients 3.1 1 0 8 2,280
doctors
Patients 2.6 2 1 5 1,515
surgical
Availability 15000 7000 2800
OBJECTIVE FUNCTION
F.O.(MAX)= 2,280X1+1,515X2
RESTRICTIONS
3.1X1+ 2.6X2≤15 000
X1+ 2X2≤7000
0X1+ X2≤2800