Limon Hospital has two types of patients: normal care and intensive care. On a daily basis, both types of patients consume resources necessary for their care. For example, they occupy beds, receive nursing help, use care supplies (lotion, gauze, tissues, etc.), have bedding, towels, and clothes laundered, eat meals, etc. Bill Simons, the hospital administrator, wants to calculate the cost per patient day for each type of patient.
To illustrate how daily care costs can be assigned to each type of patient, infor- mation has been gathered for nursing care. There are always four nurses on duty.
There are three shifts, each lasting eight hours. Nurses work 40 hours per week and are paid an average of $45,000 per year, including benefits. Full-time nurses work 50 weeks per year. The hospital employs only one part-time nurse, who is paid $22,500 for the hours worked during the year (only the amount needed to ensure that the four-nurse coverage policy is satisfied). Assume that a year is exactly 52 weeks. Dur- ing the year, normal-care patients accounted for 8,000 patient days, and intensive- care patients accounted for 2,000 patient days. Intensive-care patients use half of the nursing care hours.