Facility Location Essay

385 WordsFeb 23, 20122 Pages
Case Study: Community Hospital Analysis 1: From the statistics given we can say, The Community Hospital is facing lose day by day. From the beginning of October 1983 to March 1984 the trends of lose is downward. Here are the trends with respect to daily patient census, Occupancy rate and Income. Year 1983 | Year 1984 | Months | October | November | December | January | February | March | Daily Patient census | 42 | 68 | 83 | 98 | 102 | 109 | Occupancy (%) | 24 | 38 | 47 | 55 | 58 | 62 | Income | 101 | 163 | 199 | 235 | 245 | 262 | The Community Hospital is losing almost $ 221,000 during the first month and $ 58,000 during its last month. The reason is almost straight forward; its income is directly related to the patient census. On the other hand its expenses are fixed and are running at about $ 235,000 a month for salaries and wages, $ 75,000 a month for supplies and equipment, and another $ 10,000 a month in interest charges. Which it covered from the Bank line of credit. Though the community Hospital is continued to losing but at least last month (March 1984) it was a lot better than the first month. Analysis 2: There has been no change in revenue per patient – day over the six month period. From our point of view we can observe that the revenue is fixed for a patient. Year 1983 | Year 1984 | Months | October | November | December | January | February | March | Total | Average | Income | 101 | 163 | 199 | 235 | 245 | 262 | 1205 | 201 | Daily Patient census | 42 | 68 | 83 | 98 | 102 | 109 | 502 | 84 | Expenses | 312 | 306 | 313 | 310 | 309 | 310 | 1860 | 310 | From the statistics we can say that the Expenses in the community hospital are almost constant for each month. But the Income is proportionally related with the daily patient census. The revenue will increase with the increase in Patient census. Analysis 3: The

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