Question

In: Finance

Part 5 of 5 - Part 5 Mt. Sinai Hospital in New Orleans is a large,...

Part 5 of 5 -

Part 5

Mt. Sinai Hospital in New Orleans is a large, private, 600-bed facility, complete with laboratories, operating rooms, and x-ray equipment. In seeking to increase revenues, Mt. Sinai’s administration has decided to make a 90-bed addition on a portion of adjacent land currently used for staff parking. The administrators feel that the labs, operating rooms, and x-ray department are not being fully utilized at present and do not need to be expanded to handle additional patients. The addition of 90 beds, however, involves deciding how many beds should be allocated to the medical staff for medical patients and how many to the surgical staff for surgical patients.

The hospital’s accounting and medical records departments have provided the following pertinent information. The average hospital stay for a medical patient is 8 days, and the average medical patient generates $2,280 in revenues. The average surgical patient is in the hospital 5 days and receives a $1,515 bill. The laboratory is capable of handling 15,000 tests per year more than it was handling. The average medical patient requires 3.1 lab tests and the average surgical patient takes 2.6 lab tests. Furthermore, the average medical patient uses one x-ray, whereas the average surgical patient requires two x-rays. If the hospital was expanded by 90 beds, the x-ray department could handle up to 7,000 x-rays without significant additional cost. Finally, the administration estimates that up to 2,800 additional operations could be performed in existing operating room facilities. Medical patients, of course, do not require surgery, whereas each surgical patient generally has one surgery performed.

Assume that the hospital is open 365 days a year. Round off your answers to the nearest integer.

Question 9 of 11

10.0 Points

The optimal number of medical patients per year is __________ , and optimal number of surgical patients per year is ____________ . The maximum annual profit is _________ dollars. (Please round to the closest integer and include no units.)
Mark for Review What's This?

Question 10 of 11

10.0 Points

Among the 90 additional beds, _______ beds should be used for medical patients and _______ beds used for surgical patients.
  • A. 45, 45

  • B. 60, 30

  • C. 61, 29

  • D. 29, 61

Question 11 of 11

10.0 Points

At the optimal, there are __________ empty beds, _________________ lab tests of unused capacity, ______________ x-rays of unused capacity, and _____________ unused operation rooms available. (Please round to the closest integer and include no units.)

Solutions

Expert Solution

Revenue per patient-day of medical patient=$2280/8=$285

Revenue per patient-day of surgical  patient=$1515/5=$303

Total patient-day available=90*365=32850

Since revenue per day for surgical patient is higher , the maximum capacity should be allocated to surgical patients.

Total additional surgeries possible=2800

Maximum Number of patient to be allocated to surgery=2800

Number of patient days=2800*5=14000

Number of Lab tests required for 2800 Surgical patients=2800*2.6=7280

Number of X rays required for 2800 Surgical patients=2800*2=5600

Balance capacity available in terms of patient days =32850-14000=18850

Number of Medical patients =18850/8=2356

Number of Lab tests required for 2356 Medical  patients=2356*3.1=7304

Number of X rays required for 2356 Medical patients=2356*1=2356

LAB TEST CONSTRAINT

15000

Number of test required for Surgical patients

7280

Number of test required for Medical patients

7304

Total Number of Lab test required

14584

X RAY CONSTRAINT

7000

Number of X ray required for Surgical patients

5600

Number of X ray required for Medical patients

2356

Total Number of X Rays required

7956

X Ray Constraint is not satisfied.

Number of X rays required should be reduced by (7956-7000)=956

This can be achieved by reduction of 956/2=478 Surgical patients or 956 Medical patients

Reduction of 478 Surgical patients will reduce revenue by 1515*478=$724,170

Reduction of 956 Medical patients will reduce revenue by 2280*956=$2,179,680

Hence we should reduce 478 Surgical Patients

Final Number of Surgical Patients =2800-478=2322

Final Number of Medical Patients =2356

X RAY CONSTRAINT

7000

Number of X ray required for Surgical patients(2322*2)

4644

Number of X ray required for Medical patients

2356

Total Number of X Rays required(4644+2356)

7000

Annual Profit =1515*2322+2280*2356=$8,889,510

Number of Patient days for Surgical Patients =2322*5=11610

Number of Patient days for Medical Patients =2356*8=18848

Number of average beds used by Surgical Patients =11610/365=32

Number of average beds used by Medical Patients =18848/365=52

The optimal number of medical patients per year is 2356 and optimal number of surgical patients per year is 2322 . The maximum annual profit is 8,889,510

dollars.

Among the 90 additional beds, 60 beds should be used for medical patients and 30 beds used for surgical patients.

Idle Capacity:

Number of patient days idle=32850-11610-18848=2392

Average Number of idle beds =2392/365=7

Idle Lab Test Capacity =15000-14584=416

Unused Operating Room Capacity =2800-2322=478

At the optimal, there are 7 empty beds, 416 lab tests of unused capacity, NIL x-rays of unused capacity, and 478 unused operation rooms available.


Related Solutions

You are the hospital administrator for a county hospital, which is funded in a large part...
You are the hospital administrator for a county hospital, which is funded in a large part by that county's property taxes. You discover that you have an indigent patient who has been mistakenly admitted as an inpatient to the hospital strictly for dialysis treatment. The hospital does not, as a general practice, provide only dialysis treatment for patients. This is beyond the scope of the hospital's mandate and is therefore, an inappropriate use of local property tax funding. If the...
You are the hospital administrator for a county hospital, which is funded in a large part...
You are the hospital administrator for a county hospital, which is funded in a large part by that county's property taxes. You discover that you have an indigent patient who has been mistakenly admitted as an inpatient to the hospital strictly for dialysis treatment. The hospital does not, as a general practice, provide only dialysis treatment for patients. This is beyond the scope of the hospital's mandate and is therefore, an inappropriate use of local property tax funding. If the...
New Orleans Shipping. If the share price of​ Emaline, a New​ Orleans-based shipping​ firm, rises from...
New Orleans Shipping. If the share price of​ Emaline, a New​ Orleans-based shipping​ firm, rises from $12.13 to $15.96 over a​ one-year period, calculate the rate of return to the shareholder given each of the​ following: a. The company paid no dividends. b. The company paid a dividend of $1.01 per share. c. The company paid the dividend and the total return to the shareholder is separated into the dividend yield and the capital gain.
What is Les Misérables of New Orleans: Trap Economics and the Asset Stripping Blues, Part 1...
What is Les Misérables of New Orleans: Trap Economics and the Asset Stripping Blues, Part 1 by Clyde Woods about?
5. A large hospital took a simple random sample of 10 babies delivered at the hospital...
5. A large hospital took a simple random sample of 10 babies delivered at the hospital whose mothers intended to breastfeed. Here are the number of days until weaning for each baby: 210, 217, 240, 270, 273, 289, 324, 330, 339, 530. Is the population median number of days to weaning less than 365 (one year)? Run an appropriate test.
In 2001, a 3-year old boy was admitted to hospital in Mt Isa, Queensland with a...
In 2001, a 3-year old boy was admitted to hospital in Mt Isa, Queensland with a two-day history of an acute febrile illness and convulsions. He remained febrile over the following two days. He had further brief seizures and then developed a left hemiparesis (paralysis of one side of the body), agitation and confusion, and subsequently became comatose. He was commenced on broad spectrum antibiotics and acyclovir. Two months later he had persisting major neurological sequelae, and remained semi-comatose with...
Your facility is a large children’s hospital in north Texas. Until recently your facility was part...
Your facility is a large children’s hospital in north Texas. Until recently your facility was part of a larger health care facility run by the state. The facility is now corporately owned and operated. During this reorganization period a major fire occurred at a local elementary school. Over 100 injured children were sent to your facility for care. You encountered many problems: care was delayed and inappropriate for many children because of the nature of their injuries due to lack...
A survey of a sample of 26 hotels in New Orleans found that the average hotel...
A survey of a sample of 26 hotels in New Orleans found that the average hotel room rate s $88.42 with a standard deviation of $5.62 and another survey of 25 hotels in the Phoenix area found that the average room rate is $80.61. Assume with a standard deviation of $4.83. At α =  0.05, can it be concluded that there is a significant difference in the rates? Source: USA TODAY. Make sure to state Ho, H1 and where the claim...
In this discussion, you are the IT manager for a four-year university in New Orleans, Louisiana....
In this discussion, you are the IT manager for a four-year university in New Orleans, Louisiana. The IT department supports the computer network requirements for over 6,000 students, 300 faculty members, and 200 staff members – plus a conference network for distinguished guests. See Exploration 2 for tips on how to complete this discussion. Instructions In your initial response, address the following points: Describe the major areas that you need to include in your Emergency Action Plan and why they...
In 2011, New Orleans, Louisiana experienced an aggressive recession as compared to the rest of country....
In 2011, New Orleans, Louisiana experienced an aggressive recession as compared to the rest of country. With unemployment rates topping 15%, the city was faced with many challenges financially, economically, and socially. In addition to the financial challenges, the city was also experiencing political instability and corruption. Various major city officials were being investigated for fraud, bribery, and other criminal charges. Spark Electric, operating as a natural monopoly, was the only company in the area providing electric services to New...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT