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Minimization Cost of Hospital (PIMS) : This Photo by Unknown Author Is Licensed Under CC BY-ND

This document describes a hospital cost minimization linear programming model that can help optimize resource allocation and balance quality care with cost control. The model seeks to minimize total hospital costs, which include staffing, equipment, overhead, and average length of stay costs, while adhering to constraints like budget limits, minimum/maximum staffing and equipment levels, and acceptable length of stay ranges. Solving this model provides a systematic approach for ensuring cost-effective, high-quality healthcare services.

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69 views7 pages

Minimization Cost of Hospital (PIMS) : This Photo by Unknown Author Is Licensed Under CC BY-ND

This document describes a hospital cost minimization linear programming model that can help optimize resource allocation and balance quality care with cost control. The model seeks to minimize total hospital costs, which include staffing, equipment, overhead, and average length of stay costs, while adhering to constraints like budget limits, minimum/maximum staffing and equipment levels, and acceptable length of stay ranges. Solving this model provides a systematic approach for ensuring cost-effective, high-quality healthcare services.

Uploaded by

naqqi abbas
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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Minimization Cost of

Hospital (PIMS)

This Photo by Unknown author is licensed under CC BY-ND.


• Efficient resource allocation is paramount in
healthcare management for optimizing operations
while staying within budget constraints.
• Balancing quality patient care with cost control is a
significant challenge.
• The Hospital Cost Minimization Linear Programming
Introduction Model offers a systematic approach to address
these challenges.
• This model takes into account crucial factors, such
as staffing, equipment, overhead, bed capacity, and
average length of stay (LOS).
• In this presentation, we will explore how this model
can enhance healthcare management by ensuring
cost-effective and high-quality healthcare services.
Objectives

The primary objectives of this model is:


• To minimize the total cost associated
with operating the hospital.
Decision
Variables
• Staffing (Xsi ): Number of full-time equivalent
staff members in specific categories (e.g.,
doctors, nurses).
• Equipment (Xej ): Number of specific types of
medical equipment units (e.g., MRI machines).
• Overhead (Xo ): Overhead costs, including
utilities, maintenance, and administrative
expenses.
• Average Length of Stay (L): Average length
of stay for patients in the hospital.
Objective Function

• Minimize Total Cost (Z): This function


minimizes the total cost, which includes
staffing costs, equipment costs, overhead
costs, and the cost associated with the
average length of stay.
• Z=∑i Csi Xsi +∑j Cej Xej +∑Cl L+O

• Parameters would be estimated using Multiple


Linear Regression (Dataset to be determined)
• Budget Constraint:
• Ensures the total cost of hospital operations doesn't exceed the allocated budget
(B).
• Staffing Constraints:
• Specifies minimum and maximum staffing levels for each staff category to
maintain essential services.

Constraints • Equipment Constraints:


• Sets minimum and maximum equipment levels for specific types to ensure the
availability of essential equipment.
• Average Length of Stay Constraint:
• Maintains the hospital's average LOS within an acceptable range, preventing
patients from leaving too early or staying longer than necessary.
• Non-Negativity Constraints:
• Ensures that decision variables are non-negative, preventing negative values for
staffing, equipment, overhead, bed capacity, and LOS.
• Budget Constraint: If the budget is
$1,000,000, the constraint is:

Example
• Cs1 Xs1 +Cs2 Xs2 +Ce1 Xe1 +Ce2 Xe2
+Co Xo +Cl L≤1,000,000

Constraints • Staffing Constraints: e.g., Xs1 ≥ 10 for a


minimum of 10 doctors.
(Constraints to be • Equipment Constraints: e.g., Xe1 ≥3 for
refined using SOPs, a minimum of 3 MRI machines.
Regulations, Guidelines • Average Length of Stay Constraint:
and Best Practices) e.g., L≥4 and L≤7 for LOS within a
desired range.
• Non-Negativity Constraints: e.g., Xs1
≥0, Xe2 ≥0, etc.

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