VVH wants to determine the optimal case mix for diagnosis-related groups(DRGs) that will maximize profits. Limited resources (e.g., space, qualified employees) are available to serve patients classified in the various DRGs, and minimum levels of service (number of cases) must be achieved for each DRG. Formulate linear optimization problem. Is non-negativity constraint required in this problem?
VVH wants to determine the optimal case mix for diagnosis-related groups(DRGs) that will maximize profits. Limited resources (e.g., space, qualified employees) are available to serve patients classified in the various DRGs, and minimum levels of service (number of cases) must be achieved for each DRG. Formulate linear optimization problem. Is non-negativity constraint required in this problem?
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
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VVH wants to determine the optimal case mix for diagnosis-related groups(DRGs) that will maximize profits. Limited resources (e.g., space, qualified employees) are available to serve patients classified in the various DRGs, and minimum levels of service (number of cases) must be achieved for each DRG.
Formulate linear optimization problem. Is non-negativity constraint required in this problem?
Transcribed Image Text:Resources
DRGS
Availability
Alcohol/Drug
Coronay
Surgery
Respiratory
Birth/Delivery
Abuse
Diagnostic
services (hours)
7
10
2
1
325
ICU bed days
1
2.5
0.5
55
Routine bed
5
7
7
420
days
Nursing care
(hours)
50
88
27
50
3,800
Margin
$400
$2,500
$300
$50
Minimum cases
15
10
20
10
2.
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