Problem 1:- Mt. Sinai hospital in New Orleans is a large, private, 600-bed facility complete with laboratories, operating rooms and x-ray equipment. In seeking to increase revenues, Mt. Sinai’s administration has decided to make a 100-bed addition on a portion of adjacent land currently used for staff parking. The administrators feel that the labs, operating rooms and x-ray department are not being fully utilized at present and do not need to be expanded to handle additional patients. The addition of 100 beds, however, involves deciding how many beds to allocate to the medical staff for medical patients and how many to allocate to surgical staff for surgical patients. The hospital accounting department has provided the following information. The average hospital stay for a medical patient is 8 days, and the average medical patient generates $2,280 in revenues. The average surgical patient is in the hospital 5 days and generates $1,750 in revenues. The laboratory is capable of handling 15,000 tests per year more than it was handling. The average medical patient requires 3.1 lab tests and the average surgical patient requires 2.6 lab tests. Furthermore, the average medical patient uses one x-ray, whereas the average surgical patient requires two x-rays. If the hospital was expanded by 100 beds, the x-ray department could handle up to 7,000 x-rays without significant additional cost. Finally, the administration estimates that up to 2,800 additional operations could be performed in existing operating room facilities. Medical patients, of course, do not require surgery, where each surgical patient requires one surgery.
Determine how many medical beds and how many surgical beds should be added to maximize revenue. Assume the hospital is open 365 days per year.