Team Austin

SHOULDICE HOSPITAL A CUT ABOVE: MANA 5305 DR. Avery Taressa Stone William Condron Jason Gates Marcos Lucio Justin Clark

#1
= Total Beds = Daily Admissions Beds Required Wed Thurs Fri 30 30 30 30 30 30 30 30 90 30

Check-in day Monday Tuesday Wednesday Thursday Friday Saturday Sunday Total by Day Utilization by Day

Mon 30

Tues 30 30

Sat

Sun

30

30 60 66.7%

30 90 100.0%

90 100.0% 150 630 450 71.4% 12.5 30 = = = = = =

90 100.0%

60 66.7%

30 33.3%

30 30 33.3%

Total Operations per Week Available Bed-Days Used Bed-Days Bed Utilization Operations per Surgeon Operations per Operating Room

Question #1: See current bed utilization above, 71.4%.

#2
= Total Beds = Daily Admissions Beds Required Wed Thurs Fri 30 30 30 30 30 30 30 30 30 90 30

Check-in day Monday Tuesday Wednesday Thursday Friday Saturday Sunday Total by Day Utilization by Day

Mon 30

Tues 30 30

Sat

Sun

30 30

30 30 60 66.7%

30 60 66.7%

30 90 100.0%

90 100.0% 180 630 540 85.7% 15 36 = = = = = =

90 100.0%

90 100.0%

60 66.7%

Total Operations per Week Available Bed-Days Used Bed-Days Bed Utilization Operations per Surgeon Operations per Operating Room

Question #2: This option, adding surgeries on Saturdays while maintaining the same number of surgeries per day, would increase bed utilization by 14.3% to a total utilization rate of 85.7%. The current number of beds is sufficient to handle these extra patients. At 1 hour per surgery, including all prep, these surgeries could be covered by the current staff of surgeons, but it would require some schedule adjustments.

#3
= Total Beds = Daily Admissions Beds Required Wed Thurs Fri 45 45 45 45 45 45 45 45 135 45

Check-in day Monday Tuesday Wednesday Thursday Friday Saturday Sunday Total by Day Utilization by Day

Mon 45

Tues 45 45

Sat

Sun

45

45 90 66.7%

45 135 100.0%

135 100.0% 225 945 675 71.4% 18.75 45 = = = = = =

135 100.0%

90 66.7%

45 33.3%

45 45 33.3%

Total Operations per Week Available Bed-Days Used Bed-Days Bed Utilization Operations per Surgeon Operations per Operating Room

Question #3: With the expansion (adding 45 beds), the maximum number of surgeries the hospital could theoretically perform per day (assuming 5 surgery days remain), considering only bed availability, would be 45 surgeries. However, there would not be enough operating room hours available to handle this many surgeries without any changes to the hours of operations. The new bed capacity could not be fully utilized without additional changes (additional operating rooms or extended hours). The maximum surgeries per day under the current operations with the new beds would be 40, totaling 200 per week.

Total operating room hours available =

200

(5 operating rooms x 8 hrs x 5 days)

#4
This is the financial analysis for 50% bed expansion Expansion Costs 45 = Additional beds $100,000 = Cost per additional bed $4,500,000 = Total expansion cost Revenue/Cost per Surgery = Revenue per operation = Surgeon cost per operation = Additional revenue per operation = Additional operations Financial Analysis = Incremental revenue = Payback in weeks

$1,300 $600 $700 75

$52,500 85.7

* For this analysis we are using 75 as the number of additional operations per week because 45 is the maximum number of operations that could be done per day without running out of beds. However, using all of the same inputs except for the additional beds, only 40 operations could be done. (5 operating rooms X 8 hrs per day = 40 hours, each surgery takes an hour, so that means 40 operations can be done per day without changing the hours of the Surgical staff.) In order to achieve 75 additional surgeries per week, there would have to be severe changes, such as expanding the number of operating rooms or extending the hours during which operations are performed (and therefore adjusting Surgeons' work schedules to accomodate the additional operations).