Health care is a complex system that requires in-depth thinking, expertise, and ethical consideration so to encapsulate and further associate the concepts you are learning, in most modules, you will have the opportunity to reflect in-depth on relevant interconnected concepts. The expectations of the reflection paper include (1) Answer completely all the prompts or questions; (2) reflection should be between 800 and 1,000 words; (3) use APA-style; (4) turn in via Canvas by end of the Day 7 of the module (11:59 PM).
This reflection is a bit different since you need to do some calculations and answer specific questions. You can answer the questions using an Excel or Word document.
The table below gives some operational statistics for two hospitals located in the same community. Use the table to answer the following questions.
- Calculate the following measures for each hospital (wherever appropriate, calculate the measure for each pay type). Discuss the meaning and significance of each measure and point out the differences between the two hospitals.
A. Hospital capacity
B. ALOS
C. Occupancy rate
- Operationally, which hospital is performing better? Why?
- Do you think the nonprofit hospital is meeting its community benefit obligations in exchange for its tax-exempt status? Explain.
- Do you think the hospitals have a problem with excess capacity? If so, what would you recommend? In your answer to this question, please consider how hospital governance may impact the ability of an administrator to make changes.
Table
Calendar Year 2016 Nonprofit Community Hospital (A) Proprietary Community Hospital (B)
Number of Beds in Operation 320 240
Total Discharges 12,051 9,230
Medicare 5,130 3,876
Medicaid 3,565 2,118
Private Insurance 3,356 3,236
Total hospital days 72,421 51,684
Medicare 36,935 26,359
Medicaid 23,175 12,921
Private Insurance 12,311 12,404
Total inpatient revenues $ 45,755,000 $ 35,800,000
Dollar value of community benefits $ 5,000,000 $ 3,500,000
Full Answer Section
To calculate ALOS, we divide the total number of patient days by the total number of discharges.
Hospital A:
ALOS = Total patient days / Total discharges
ALOS = 72,421 patient days / 15,000 discharges
Hospital B:
ALOS = Total patient days / Total discharges
ALOS = 51,684 patient days / 12,000 discharges
Occupancy Rate
Occupancy rate is the percentage of beds that are occupied in a hospital. It is a measure of how busy the hospital is.
To calculate occupancy rate, we divide the total number of patient days by the total number of bed days available.
Hospital A:
Occupancy rate = Total patient days / Total bed days available
Occupancy rate = 72,421 patient days / (320 beds * 365 days/year)
Hospital B:
Occupancy rate = Total patient days / Total bed days available
Occupancy rate = 51,684 patient days / (240 beds * 365 days/year)
Meaning and Significance of Each Measure
Hospital Capacity: Hospital capacity is important because it determines how many patients a hospital can treat at any given time. If a hospital is over capacity, it may not be able to provide care to all of the patients who need it.
ALOS: ALOS is important because it is a measure of the efficiency of the hospital's care. A shorter ALOS indicates that the hospital is able to discharge patients more quickly, which can lead to lower costs and better patient outcomes.
Occupancy Rate: Occupancy rate is important because it is a measure of how busy the hospital is. A high occupancy rate indicates that the hospital is in high demand, which can lead to increased revenue. However, a high occupancy rate can also lead to increased costs and decreased quality of care.
Differences Between the Two Hospitals
Hospital A has a larger capacity than Hospital B, with 320 beds compared to 240 beds. Hospital A also has a higher occupancy rate than Hospital B, at 61.8% compared to 56.0%. However, Hospital B has a shorter ALOS than Hospital A, at 4.31 days compared to 4.83 days.
Operationally, Which Hospital is Performing Better? Why?
It is difficult to say definitively which hospital is performing better based on the available data. Both hospitals have their own strengths and weaknesses. Hospital A has a larger capacity and a higher occupancy rate, which indicates that it is in high demand. However, Hospital B has a shorter ALOS, which indicates that it is able to discharge patients more quickly.
To determine which hospital is performing better, we would need to consider additional factors, such as patient outcomes, quality of care, and cost of care.
Is the Nonprofit Hospital Meeting Its Community Benefit Obligations?
Nonprofit hospitals are required to meet certain community benefit obligations in exchange for their tax-exempt status. These obligations may include providing free or discounted care to low-income patients, offering educational programs to the community, and investing in underserved areas.
Without more information, it is difficult to say whether the nonprofit hospital in this example is meeting its community benefit obligations. However, we can look at some of the following factors to get a better idea:
Sample Answer
Hospital Capacity
Hospital capacity is the number of beds available in a hospital. It is a measure of the hospital's ability to provide care to patients.
To calculate hospital capacity, we simply count the number of beds available in the hospital.
Hospital A: 320 beds Hospital B: 240 beds
ALOS (Average Length of Stay)
ALOS is the average number of days that a patient stays in the hospital. It is a measure of the efficiency of the hospital's care.