An economic and linear model of the hospital

Abstract

The hospital is examined as an economic entity, in terms of inputs, constraints, and intermediate outputs, and a linear economic model for planning admissions is constructed. The model is based on the concept of patient equivalence classes which are defined by requirements for goods and services and by sets of weights assigned by the hospital to fulfilling those requirements. The hospital's terminal output is defined by the model as the weighted sum of patients treated in all equivalence classes. The optimal solution of the objective function defines the hospital's output capacity. The data requirements of the model are discussed.